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Crypto: Jim Cramer urges to take profits

Mad Money host Jim Cramer has urged crypto investors to take profits on any gains so as not to let them turn into losses. 

Profit from losses. Jim Cramer’s invitation on crypto gain

The invitation was issued a few days ago, in the midst of the Evergrande crisis when the Hong Kong stock exchange suffered one of its worst days in recent times, but in the meantime, the Evergrande issue seems to have momentarily receded. 

After plummeting 87% over the course of the year, Evergrande shares have now stabilized over the past few days and have even gained 18% since yesterday. 

In recent days, there has been a lot of fear in the financial markets, precisely because of the gigantic bankruptcy that was expected for the Chinese company. 

The crash in the crypto world

Between yesterday and today, the fear seems to have receded, at least in the short term, because on the one hand, it seems that it will not be a quick crash but a controlled implosion of the company that is no longer able to repay the huge mountain of debt, while on the other hand, the Chinese government has made it known that it is willing to intervene to save the financial markets from possible contagion and especially to save the Chinese real estate market, one of the main sources of wealth creation for the country. 

On Monday, Cramer went on CNBC to urge investors who are in profit to sell their cryptocurrencies, saying that digital currencies could suffer from greater weaknesses related to the Chinese real estate crisis, and in particular the possible bankruptcy of Evergrande.

“Don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout”.

In other words, he did not call for liquidating all cryptocurrency positions, but only for cashing in any profits so as to avoid possible losses, leaving the rest invested. 

In the course of 2021, many cryptocurrencies generated big gains, in some cases huge ones. For those who have invested for some time, and are currently making a strong profit, it may not be difficult to get back the entire capital invested without having to sell everything. 

According to Cramer, the Chinese crisis could bring problems especially to Tether (USDt), whose value is also covered by commercial assets, some of which are suspected to be linked to Chinese markets. So a collapse in the Chinese markets could theoretically undermine the value of USDt, should these assumptions be correct. 

The fact is that, for the time being, Chinese financial markets have not only not collapsed, but have already almost recovered the losses generated at the beginning of the week.

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".