CNBC’s Jim Cramer Urges Crypto Investors to Stay Away From Shiba Inu (SHIB) and Dogecoin (DOGE).
The CNBC Mad Money host has issued a new warning to crypto investors amid Fed’s tightening cycle.
Jim Cramer, CNBC’s Mad Money host, has urged investors to “stay away from speculative assets like cryptocurrencies” as the Federal Reserve (Fed) continues its effort to mitigate rising inflation in the U.S.
Cramer said the perfect explanation for Fed chief Jerome Powell’s speech last week was that Americans should stop investing in riskier assets.
“Look, Fed chief Jay Powell told us that we need to stop doing stupid things with our money. That was the thrust of his speech on Friday,” Cramer said in a video published by CNBC.
His emphasis was on memecoins like Shiba Inu (SHIB), Dogecoin (DOGE), as well as other top cryptos, including Polkadot (DOT).
“Bottom line and this is important; I need you to stay away from unprofitable junk […] Dogecoin, Polkadot, Avalanche, DAI, Polygon, Shiba Inu, Avalanche, Uniswap, Cosmos, Optimism, and a couple of other weird stuff,” he added.
Cramer also noted that he no longer believes in the argument that Bitcoin can be used as a store of value because the asset class has largely plummeted following the Fed’s recent tightening cycle.
“This is what it looks like when the Fed gets serious,” Cramer added.
Aside from cryptocurrencies, the Fed’s quest to mitigate rising inflation has also affected other financial instruments like stocks.
Cramer: More Pains to Come
At the moment, it does not seem likely that the Fed will stop anytime soon, with Cramer stating that Powell would continue to inflict more pain on investors until inflation is reduced drastically.
“We won’t see the end of this decline until we get a giant washout of all things that are speculative,” Cramer said.
He also suggested that investors should avoid getting into money-losing firms that went public via special purpose acquisition companies (SPAC) and meme stocks.”
Cramer’s recent statement about crypto is contradictory, given that he has previously encouraged investors to own a small percentage of the nascent asset.
Crypto Investors May Not Heed the Warning
Interestingly, there is a possibility that investors may not heed Cramer’s warning following an issue that occurred earlier this month. He hinted that crypto prices might plummet as Coinbase was under investigation for facilitating the trading of unregistered securities.
In contrast to his assertion, crypto prices soared the following week, prompting investors to slam him for the comment.
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