On May 23, American TV personality and former hedge fund manager Jim Cramer shared his remark over the current catastrophic stock market condition, saying that it is too early to consider the market at the bottom.
While the global trade war is gradually cooling down, the U.S. stock market is still experiencing its shockwaves. The economic uncertainties and surging bond yields put investors at risk, damaging market confidence.
Dow Jones, S&P 500, and Nasdaq have plunged by 0.32%, 0.62%, and 0.41%, respectively.
Additionally, Moody’s rating agency has cut the US credit rating for its debt pile of staggering $36 trillion, which triggered market jitters. The agency downgraded the credit rating from the pristine Aaa to Aa1.
If traders joke that Cramer is a contrarian indicator, his bearish stock market take could ironically fuel more bullish sentiment in crypto. Also, some might interpret his warning as a sign that traditional markets are riskier, which can push capital toward Bitcoin and altcoins as “hedges.”
While stocks are crashing due to trade wars and fisal instability, cryptocurrency, which is already booming through roof, could witness a rally as an alternative asset.
All in all, Jim Cramer’s statement could create an “inverse Cramer” meme effect, potentially benefiting the crypto market.
Bitcoin is currently trading around $109,000 with approximately 5% hike in a week. This surge comes from the growing adoption of Bitcoin among institutional investors. Also, U.S. states like Arizona and North Hemisphere have recently passed legislation to form a Bitcoin reserve.
Also Read: Bitcoin Institutional Adoption to Reach $426 Billion by 2026
