Jim Cramer, the host of CNBC’s Mad Money show, has endorsed ethereum and spot ether exchange-traded funds (ETFs), highlighting the cryptocurrency as a “great store of value” amid concerns over the U.S. dollar due to federal budget deficits. “I have ether because it’s a great store of value,” he affirmed. Jim Cramer on Ethereum and […]
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The Market Has Decided a Recession Is Coming, Says Mad Money’s Jim Cramer
The host of Mad Money, Jim Cramer, says the market has already decided that the Federal Reserve “will tighten and create a recession no matter what.” Cramer also recently said that we are in a bull market, advising investors to buy the dip.
Jim Cramer on Recession
The host of CNBC’s Mad Money show, Jim Cramer, believes that the market has already decided that the U.S. economy will be in a recession. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
Cramer tweeted Monday:
It does not take too long for this market to go negative. It’s already re-digested Friday’s news and decided that the Fed will tighten and create a recession no matter what.
After a series of 75-basis-point hikes, the Federal Reserve raised its benchmark interest rate by 25 basis points last week. Stocks rallied following the Fed announcement. In addition, new data released Friday by the Bureau of Labor Statistics showed that 517,000 new jobs were added in January and the unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969. However, Cramer noticed that the S&P 500 fell slightly on Monday morning.
Many people are not expecting the U.S. to slide into a recession. Treasury Secretary Janet Yellen said Monday on ABC’s Good Morning America: “You don’t have a recession when you have 500,000 jobs and the lowest unemployment rate in 50 years.” Moreover, global investment bank Goldman Sachs cut the probability of the U.S. entering a recession in the next 12 months from 35% to 25% Monday. “Continued strength in the labor market and early signs of improvement in the business surveys suggest that the risk of a near-term slump has diminished notably,” Goldman Sachs wrote.
‘We’re in a Bull Market’
A number of people pointed out on Twitter that Cramer recently said we are in a bull market. The Mad Money host explained on Jan. 31 that the market’s ability to gain due to strong earnings reports suggests that it has more room to run. In contrast, “Bear market goes the opposite way — stocks open up, then get clobbered and you feel humiliated. Good earnings mean nothing except price target cuts,” Cramer opined, adding:
If we’re in a bull market, and I think we are, you have to prepare yourself … We have to prepare for the down days now because in a bull market, there are buying opportunities.
He concluded: “Even if it doesn’t reverse today, well then, there’s always tomorrow, so don’t think of betting against it.”
Do you agree with Mad Money’s Jim Cramer? Let us know in the comments section below.
Fast Money’s Brian Kelly Remains Bullish On Bitcoin, Here’s Why
Fast Money trader Brian Kelly was on the show recently to talk about Bitcoin’s recent price surge. The surge which had happened at the end of the weekend had seen the price of Bitcoin rise over 10% to surpass ,000, gaining over ,000 within a day.
Brian Kelly agreed with show host Melissa Lee saying that the short-covering contributed to the price surge. Kelly explained that a high number of short coverings around the asset saw the price shooting up as the weekend drew to a close. A lot of factors have been speculated to have given rise to the price spike.
Related Reading | Bitcoin To Reach New All-Time Highs, Market Strategist
Rumors of Amazon integrating Bitcoin on its platform had been the front-running theory behind the price spike. But Kelly explained that the rumors were only part of the reason that the digital asset had seen significant movement. Outlining other factors that contributed to the rally.
Catalyst For Price Spike
Brian Kelly addressed the speculations of the Amazon news being the main catalyst for Bitcoin’s price surge. Kelly explained that the Amazon news had been out in the market about a week before the momentum picked up.
According to Kelly, the high amount of shorts coupled with the news of Amazon and Tether’s news led to a “big short squeeze” as the weekend drew to a close, which is when the market is usually less liquid than usual.
BTC price breaks ,000 for the first time in over a month | Source: BTCUSD on TradingView.com
The short squeeze had seen over trillion shorts liquidated in a matter of 24 hours as the price surged. With Bitcoin contributing over 70% of this amount, seeing over 0 million shorts liquidated in the same period of time.
Following the short squeeze has been a bounce-back of the trading volume and volatility levels of Bitcoin, which had been trending at yearly lows for about a month. The digital asset has since picked up momentum and the market seems determined to ride out this wave for as long as possible.
Still Bullish On Bitcoin
Kelly responded to a question regarding the price of the asset bouncing back before reaching ,000. Saying that the bounce had come as no surprise. Kelly personally remains bullish on bitcoin. “The real game here is whether or not it is going to be adopted as an institutional asset,” Kelly said. “And I don’t see anything that has changed my mind on that.”
Continuing on, Kelly added the decision of the federal bank and federal reserve to keep printing money could be a determining factor. To which Kelly said, “By my score, I don’t see how they cannot continue to print.”
Related Reading | Bitcoin Price Drops ,000 In 12 Hours After Amazon Dispels Bitcoin Integration Rumors
The rate at which the Fed prints fiat money continues to be a concern for investors. This could lead to inflation if the amount of paper money being printed is not controlled. To this end, Bitcoin becomes an attractive asset for investors who are worried about inflation. Given the limited supply of the asset, there is simply no way for an individual or government to print or make more coins. Hence, fighting inflation.
Bitcoin continues to see bullish movement. At the time of this writing, the asset price has now broken ,000 and continues to trend upward.
Featured image from NBC News, chart from TradingView.com
Poof, Your Money’s Gone: Building for a New Wave of Blockchain Users
MyEtherWallet founder Taylor Monahan knows a thing or two about blockchain users, arguing they’re not ready for the early blockchain tools of today.
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