CNBC mad money host Jim Cramer has once again stirred the pot in the cryptocurrency world with his latest tweet comparing gold and cryptocurrencies.
In an X post made a few hours back, Cramer wrote, "Remember this: gold held up a lot better than crypto." This statement quickly garnered reactions from the crypto community, with many interpreting it as a potential bottoming signal for the cryptocurrency market.
Remember this: gold held up a lot better than crypto...
ā Jim Cramer (@jimcramer) August 5, 2024
Cramer's tweet comes as the cryptocurrency market is experiencing increased volatility. Cryptocurrencies fell on Monday amid a global market sell-off triggered by recession fears.
Bitcoin fell to $49,050 at one point, its lowest level and the first time below $50,000 since February, after trading around $70,000 a week earlier.
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The developments reflect a broader market sell-off that began last week, when a weaker-than-expected July jobs report fueled investor concerns about a recession. Bitcoin has dropped over 18% since Saturday.
Ethereum's losses were significantly greater. The cryptocurrency asset fell 17% to $2,259, extending its three-day loss to 24% and wiping out its 2024 gain. The Nasdaq Composite has undergone a decline; Japanese stocks entered a bear market Monday after falling more than 12% overnight, the largest one-day drop since 1987.
Crypto community reacts
Cramer's post drew attention from the crypto community, given his previous history with cryptocurrencies, in which he frequently expressed skepticism on the asset class. Most times Cramer's prediction turns out contrary and, hence, his words are often taken lightly.
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A look at the comments under Cramer's post indicated that some interpreted Cramer's comment as a potential bottoming signal for the crypto market, suggesting that the worst of the downturn might be over.
Some also held it as a contrarian indicator, believing that when mainstream financial commentators express skepticism, it could signal a buying opportunity.
Cramer's recent comment to some was seen as a market bottom and potential rebound.
