Investors Warned: Avoid Crypto Euphoria, Invest in Gold Instead
• Jim Cramer, host of CNBC’s Mad Money, cautioned investors not to fall victim to crypto euphoria, instead seeking gold as a substitute.
• On Jan. 23, the price of Bitcoin surged further as investors gambled that the Federal Reserve would slow or halt its interest rate reductions.
• Cramer looked to the daily chart of the tech-savvy Nasdaq-100 and the bitcoin futures dating back to March 2021 to illustrate the analysis from Carley Garner, senior commodity market strategist and trader at DeCarley T.
On January 24, 2023, Jim Cramer, the host of CNBC’s Mad Money, advised investors to avoid getting caught up in the crypto euphoria and instead look to gold as a substitute. Despite the recent gains of Bitcoin, Cramer warned of the volatility of cryptocurrencies and the risks associated with them. He pointed out that it would be unwise for business owners to use Bitcoin or the shares of Google or Facebook parent companies Alphabet Inc. or Meta Platforms Inc. for transactions.
Encouraging news of the Federal Reserve’s potential slowing or halting of its interest rate reductions, the price of Bitcoin reached an all-time high of $23,155.93 on January 23. Data from Coin Metrics showed that the value of Bitcoin had risen by nearly 39% since the beginning of the month.
Cramer provided analysis from Carley Garner, a senior commodity market strategist and trader at DeCarley T, which examined the daily chart of the tech-savvy Nasdaq-100 as well as the bitcoin futures dating back to March 2021. Garner’s analysis suggested that rather than being a reliable store of value, cryptocurrencies are more like risky investments.
In comparison to Bitcoin, Cramer advised investors to opt for gold instead. He noted that it is possible for one to own Bitcoin directly in a decentralized wallet, however noted the danger of using it for anything. In contrast, he noted that gold is the exact opposite and is less risky.
Recent Comments