Jim Cramer: Cryptocurrencies lack real value

Former hedge fund manager, CNBC analyst believes that the loss of more than 60% of digital asset capitalization does not indicate that the crypto market has bottomed out.

Mad Money host Jim Cramer said in an interview with Squawk Box that even after the market has lost more than two-thirds of its total value, the decline could continue. A former top hedge fund manager claims that digital assets lack "real value" and nothing can stop them from collapsing further:

“There are a lot of investors in the industry right now. Cryptocurrency seems to be really exploding. The crypto market has fallen from $3 trillion to $1 trillion, and is able to move on.”

Cramer noted that the total market capitalization of the crypto industry currently stands at 946 billion, which is 69% less than the all-time high of $3.06 trillion recorded in November 2021. CNBC analyst laments that investors have suffered losses of hundreds of millions of dollars as crypto companies facing financial turmoil suspend or stop providing services:

“You look at these companies that you have never heard of. They faced default. And you say to yourself, “Oh my God, $600 million just went down the drain.”

Kramer warned last month that bitcoin could drop in price to around $12,000, the level it last reached in October 2020.

Research agency Glassnode believes that Bitcoin is experiencing the worst bearish trend in its history. According to the agency’s specialists, market indicators show that in the current market, most traders sell bitcoins at a loss.