Jim Cramer: The Fed Secures an Outstanding Victory Over Cryptocurrencies

Former hedge fund manager of Cramer & Co. and host of CNBC’s Mad Money, Jim Cramer noted progress by the U.S. Federal Reserve (the Fed) in its fight against digital assets.

“In the war on inflation there is a front with an outstanding victory by the Fed, and this is the battle against financial speculation. […] The work to destroy cryptocurrencies is virtually complete, but they seem not to know about it yet,” he said.

In Cramer’s view, digital assets offer investors no protection from anything, and the Fed should continue its fight against inflation, particularly on wages.

In October 2021, the host supported investors buying cryptocurrencies who understood all the risks. According to Cramer, he himself did not invest in Bitcoin or Ethereum as a hedge against inflation, but “just gambled.”

As reported by Coinglass, the second quarter of 2022 was the worst for Bitcoin in 11 years. The asset fell 56.2%, from $45,000 to $19,884.

According to Galaxy Digital CEO Mike Novogratz, the downturn in the crypto market will last for about another 18 months, and the industry will see its first signs of recovery after the Fed eases monetary policy.

Investor Michael Burry, who predicted the 2007 mortgage crisis, forecast the continued decline in Bitcoin’s price.

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