Crypto Market Bloodbath Explanation Provided by Jim Cramer

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As a seasoned crypto investor with over a decade of experience navigating market volatility, I find myself cautiously optimistic amidst the current sell-off. While it’s disheartening to see the red numbers across both traditional stocks and cryptocurrencies, it’s important to remember that market downturns are often a part of the investment journey.

Jim Cramer, the host of CNBC’s Mad Money and financial commentator, has expressed his views on his X platform account as to why he thinks the recent market downturn is occurring. The stock market is experiencing a steep decline, causing even the value of cryptocurrencies to follow suit

Jim Cramer clarifies current market sell-off

According to Cramer, it’s his belief that the current downturn in both stock and cryptocurrency markets is largely due to a massive selling off of specific assets. These include sectors related to Artificial Intelligence and technology, real estate (housing), oil, and certain companies tied to infrastructure

In the last day, the head honcho of the cryptocurrency market, Bitcoin, experienced a drop of 4.60%, but managed to recover 1% of that loss today. On the other hand, the S&P 500 index declined by 0.12% or 6.88 points, when considering today’s trading

The current situation isn’t a broad sell-off across all markets. Instead, it appears to be a specific selling spree involving sectors like artificial intelligence, data centers, computing, housing, oil, and companies heavily invested in infrastructure

— Jim Cramer (@jimcramer) September 4, 2024

As a crypto investor, I’ve noticed Cramer’s recent tweet pointing towards potential AI-related sell-offs. This seems to be in response to the US Department of Justice starting to subpoena Nvidia, a giant in microchip production, as part of an intensifying antitrust investigation. It’s making me reconsider my investment strategy in this sector

In the swiftly expanding realm of Artificial Intelligence (AI), Nvidia’s influence has significantly grown, with numerous AI development firms – such as Elon Musk’s xAI – buying H100 chips for training their AI systems

JUST IN: 🇺🇸 🩸

Market wiped out $1 TRILLION from the US stocks.

— Radar🚨 (@RadarHits) September 4, 2024

The Department of Justice (DoJ) has served subpoenas to not only Nvidia but also multiple other chip-manufacturing companies. This action comes as they are under suspicion for potential antitrust law violations, as reported by Bloomberg. Essentially, the US government is moving closer to filing a formal complaint against Nvidia

Bearish September unwrapping?

Historically speaking, September has typically seen a downturn in the market over the last decade, whereas October and November have generally been quite favorable. This is why traders often refer to October as “Uptober”

Given that we’re now in September, it appears the recent market decline is aligning with a typical bearish pattern. However, looking back at Octobers over the past decade, Bitcoin has experienced significant growth – reaching a 40% and 50% increase on some occasions

The #crypto market is bleeding! 🩸

— Ali (@ali_charts) September 4, 2024

As a researcher delving into Bitcoin’s market dynamics, I find myself at odds with the notion of bearish Septembers as far as BTC is concerned, based on Samson Mow’s recent assertions. In his latest tweet, Mow presents several compelling arguments suggesting that the world’s leading cryptocurrency could soar past expectations, defying the widespread bearish September predictions

Mow suggests that underfunded pension funds may be inclined to invest their massive amounts of money, estimated in the hundreds of billions, into Bitcoin. Moreover, he anticipates that MicroStrategy will likely carry on with issuing convertible senior notes, increasing debt for investors, as a means to gather more funds and acquire additional Bitcoins

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2024-09-04 18:11