Home Crypto Why investors should ignore crypto and stick with gold

Why investors should ignore crypto and stick with gold

by CryptoFan
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CNBC’s Jim Cramer on Monday warned investors to stay away from cryptocurrencies. BitcoinFocusing on the recent gains of, instead of Money.

“A chart interpreted by Carly Garner suggests we need to ignore cryptocurrency cheerleaders at a time when Bitcoin is skyrocketing, and we are serious about real hedges against inflation and economic turmoil. She says you should stick with gold if you want to, and I agree,” he said.

Bitcoin Continued rise on MondayIt hits a high of $23,155.93 as investors bet that the Federal Reserve will ease the pace of rate cuts or stop altogether.

The digital currency’s price hit $23,333.83 on Saturday for the first time since August, according to Coin Metrics. This shows that Bitcoin is up almost 39% since the beginning of the month.

To illustrate Garner’s analysis, Senior Commodity Market Strategist and Broker at DeCarley Trading, Cramer looked at the Nasdaq-100 daily charts of Bitcoin futures and tech stocks going back to March 2021.

Garner points out that the two indices are trading almost in tandem, which Cramer said suggests that this is a risky asset rather than a currency or stable value hold.

“Imagine a business owner trying to trade shares in Facebook or Google…it’s ridiculous.It’s too volatile.Bitcoin is no exception,” he said.

Cramer said the reason they trade so closely is because of “counterparty risk,” which is the possibility that an investment or trading counterparty may not meet the trading objectives.

“Of course, you can own bitcoin directly in a decentralized wallet. This protects you from counterparty risk, but if you want to use it for something, the risk is back on the table. What FTX Customers Learnedit can be devastating,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Meta Platforms and Alphabet.

For a detailed analysis, see Cramer’s full explanation below.

Jim Cramer analyzes Carley Garner's new chart analysis

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