The broader crypto market has experienced a continuous drop in price and has been significantly impacted by notable crypto events such as the bankruptcy filing of prominent crypto exchanges and the meltdown of the Terra Luna ecosystem.
Experts predict that the prices of the top cryptocurrencies will fall to their lowest levels ever, and that several exchanges will encounter a liquidity crisis. In line with this, Mad Money host and former hedge fund manager Jim Cramer advised crypto investors to dump their crypto holdings in the market.
Why is Jim Cramer advising investors to sell their crypto?
Jim Cramer noted the collapse of FTX as one of the reasons he believes that leads the global crypto market toward a recession. He also mentioned the collapse of the Terra Luna ecosystem, which significantly affected the broader cryptocurrency market.
During its assertion, Jim also criticized so-called stablecoins, particularly the TerraUST. TerraUST was depegged in May of this year and plummeted to zero in just three days. He warned that, like Tether, other stablecoins could encounter similar challenges.
The Mad Money host also mentioned four tokens that, in his opinion, might fall to zero: Ripple (XRP), Cardano (ADA), Dogecoin(DOGE), and Polygon (MATIC).
For these reasons, he emphasized that investors should be wary of what lies ahead in the crypto market and the consequences that affect their crypto holdings if they stay unconcerned for the time being.
What lies ahead?
Meanwhile, the broader crypto market is currently eyeing the Dec 15 scheduled FOMC meeting which will undoubtedly shift the trend of the crypto market. However, experts claim that FED will reduce its hawkish stance toward interest rate hikes, but only time will tell what's in store for the broader market.
What will you do, going after Jim Cramer's advice or holding your cryptocurrency for a little longer? Share your thoughts in the comment section below.
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