2023 Shall Be Another Weak Year For Crypto, Predicts Jim Cramer
The year 2022 was a difficult one for cryptocurrencies, with Bitcoin, Ethereum, and Polygon experiencing significant depreciation. The demise of FTX, a major crypto exchange, due to liquidity issues further exacerbated the situation.
Despite this, many are optimistic that 2023 will be a better year for crypto. In a poll conducted by CoinMarketCap, a bitcoin tracking website, 83.11% of respondents expressed a bullish attitude for the coming year, while only 16.89% believed it would be bearish.
However, Jim Cramer has a different perspective.
Jim Cramer: ‘I would not touch crypto in a million years
Jim Cramer is a financial commentator and television personality. He is best known for hosting “Mad Money,” a financial advice show that airs on CNBC. Cramer is also the co-founder of The Street, a financial news and analysis website.
He expressed his reservations about cryptocurrency on Friday, saying he would not invest in it “in a million years,”, especially after the collapse of the crypto exchange FTX last month. He continued by saying that he would never personally invest in cryptocurrencies due to a lack of regulations and his distrust of deposit banks.
In his most tweet, he predicted another weak year for cryptocurrency.
Cramer, though, has not always been anti-crypto. In fact, Jim Cramer once genuinely believed that if the United States Securities and Exchange Commission (SEC) approves the first BTC Exchange Traded Fund (ETF), the price of Bitcoin may experience a tremendous increase.
While the SEC has yet to approve an application for a true Bitcoin ETF, Cramer changed ship, selling his Bitcoin assets in favor of Ethereum, which he anticipated will have more usage due to its decentralized smart contract-enabled designs. Cryptocurrency is no longer worthwhile, according to Cramer, especially pump-and-dump coins like Litecoin (LTC), Dogecoin (DOGE), and others.
Crypto Community Reacts
The majority of the cryptocurrency community does not agree with his views. In fact, Cramer has been criticized and mocked for his comments. Some people even claimed that Jim Cramer’s prediction of a dismal year was actually optimistic for the market.
With that being said, cryptocurrency predictions should be taken with a grain of salt, as they are often based on speculation and are subject to a high degree of uncertainty.
Cardano Continues to Remain Extremely Weak! ADA Price To Hit This Level By October End
Ever since the FED released the fresh CPI rates, the crypto market continues to remain heavily consolidated. Bitcoin price slumped close to $19,000, while Ethereum price was below $1300. At the same time, the popular crypto Cardano which was assumed to mark lows below $0.3, now displays a minor bullish divergence. However, the confirmation of a rebound may still remain misty until the ADA price is raised beyond $0.4.
The Cardano price continues to display significant volatility as it continues to trade at around $0.3469 with a slight increase of +1.80% in the past 24 hrs. Meanwhile, the bears continue to mount significant pressure on the asset. However, the relative position has tangled down heavily and sits around the lowest position since January 2019. On the contrary, the ADA price continues to manifest the possibility to go long as the MVRV-Z smashed one of the crucial levels.
The MVRV-Z score is the difference between the market capitalization & realized value. Presently, the z-score is dropping hard and reached levels around -1.35 for the first time in the past 45 months. This signifies that the asset is highly undervalued as the realized value has raised above the current market cap.
Meanwhile, the NFT activity over the Cardano network has significantly risen which offers a tough condition for Solana. Additionally, the developers have planned to launch an additional update called ‘Hydra’ that intends to increase the blockchain’s transaction capacity from 250 to 1,000,000 per second.
Hence, considering the above reasons, Cardano’s price may explode in the coming days as the trading volume remained within a very impressive region amid the current bear market. Therefore, in the next bull run, the beat DeFi & NFT trading platform could be Cardano which may impact the ADA price to a large extent.
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Weak Hands Could Be Wiped Out in 2022; Here’s Who Might Lead the Next Bull Run!
The year 2022 demonstrated the diverse features of the crypto space as well as market participants such as short-term holders, long-term holders, whales, as well as strong and weak hands. While the strong hands continued to amass wealth, the weak hands continued to extract profit at every turn.
At the beginning of the year 2022, the market capitalization was trading around $2 trillion. However, the deadly market crash led by the LUNA-UST crisis, dragged the levels close to $1 trillion. Woefully, the levels have dropped below the levels, presently and manifest the possibility to bottom hard in the coming days.
Well, the steep drops are speculated to have been led by the weak hands, who may be wiped out in 2022.
According to santiment data, the weak hands have been liquidating their assets in order to make small profits and thus chase short-term bounces. This is primarily due to Bitcoin‘s and Ethereum‘s social dominance. According to the data, the rate of market participants discussing cryptos on social media platforms has been drastically reduced.
Presently, the BTC dominance has dropped below 14% while that of ETH is below 8%. The BTC price and the entire crypto space may turn bullish only if these rates surge beyond 20%. As a result, long-term traders are fairly confident about the upcoming rally after Bitcoin regains mainstream attention. Hence, a fair upswing may ignite at any moment in the next couple of months.