Jim Cramer is very much concerned about the near future of global crypto economy as he is expecting it to crash anytime soon. This is why he is urging crypto owners to sell their crypto and take whatever profits they can before it is too late for them to get rid of their virtual assets. He says that he does not want people lose their hard earned money.
On 20th September, 2021, Mad Money’s host, Jim Cramer, was seen advising crypto owners to get rid of their virtual assets. In fact, it wasn’t an advice but more of a warning. He said that he is aware of the fact that crypto community would never wish to see him advising anyone to sell their crypto portfolios.
However, if the owners of virtual assets are wary that they will not succumb loss but earn profits, then they should immediately sell their assets. Otherwise, the future is not as they are expecting because losses are awaiting in the corner, advised Cramer.
According to Cramer, the future of crypto heavily relies on China’s position over private virtual assets. He stated that there hasn’t been a single change in the policy of Chinese Government with regard to crypto and mining. Any further continuation of Chinese crackdown against crypto will result in the collapse of global crypto economy. But what is even more alarming is to see how China reacts with regard to Evergrande.
Cramer said that Evergrande is a Chinese company involved in multiple activities but mainly a developer of properties. The other businesses Evergrande owns are manufacturing of electric cars and healthcare related services. The total debts of Evergrande exceed US$ 300 Billion. However, the current state of business of Evergrande is not in good shape. Apparently, the company has issued a warning that it cannot keep up its businesses and can opt for bankruptcy.
Cramer stated that his grave concern is about Tether. He claims that half of Tether loans are for short term basis and have been taken from Chinese companies. One way or the other, the Chinese companies from whom Tether has sought loans, are directly or indirectly linked with Evergrande.
In these circumstances, it is quite possible that if Evergrade goes bankrupt then these Chinese companies too will be facing the turmoil. He believes that the troubles originating from China will take on Tether in the first place and then the whole crypto economy.
He is of the view that in case Tether collapses, the impact of Tether’s fall will prominently affect the entire crypto economy. It is in this context that Cramer has been advising crypto owners to immediately get rid of their virtual assets. He opined that if the owners can gain only a small amount of profits then they should not ignore.