Bitcoin
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CNBC’s financial news columnist and Mad MoneyGram host warned crypto investors not to be fooled by the recent rise in the crypto market and advised them to turn to traditional assets.
Jim Cramer, suggested the upcoming drawdown of the bitcoin rate against the backdrop of the decision of the US Federal Reserve. The financial community expects that on Wednesday, February 1, the Fed will announce a new increase in the key rate by 0.25 percentage points, which will bring the rate to the level of 4.50% – 4.75%. Thus, the Fed seeks to reduce the impact of the strongest surge in inflation since the 1980s.
Earlier, Fed Chairman Jerome Powell threatened that his agency would not ease up on efforts to fight inflation until there was “compelling evidence” that price growth had begun to decline. Gene Cramer notes that as a result of rising risk aversion by investors ahead of the Fed’s decision, the price of bitcoin fell to $22,700, losing 1.4% overnight.
The TV presenter assures that financial market analysts agree that bitcoin price swings may reflect the consequences of a strengthening dollar and a decrease in investor interest in risky assets such as cryptocurrencies.
Mad MoneyGram host clarified that BTC options data shows that traders are preparing for a possible short-term pullback. Indirectly, this assumption is confirmed by the liquidation of long positions in bitcoins in the amount of more than $45 million and short positions in the amount of almost $4 million.
However, the crypto community is cautious, as Cramer’s views on the value of cryptocurrencies in the past have been inversely related to real market events. This led to a “reverse Cramerian” narrative, according to which the US Fed’s decision could, on the contrary, increase pressure from sellers of risky assets such as Bitcoin and other cryptocurrencies.
At the beginning of the year, Jim Cramer predicted to the crypto community that in 2023 one should not expect major take-offs in crypto projects, as depressive moods will prevail in the industry.
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