updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131CNBC “Mad Money” host Jim Cramer said Monday investors like him should book profits in their cryptocurrency portfolios before things get worse due to the weakness related to struggling Chinese property developer Evergrande.
What Happened: Cramer said, as much as cryptocurrency backers don’t like to hear the word “sell,” he was “begging” investors who have made gains in cryptocurrencies to sell some of their holdings and return to weigh in as the situation unfolds.
“Don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout,” Cramer said on his show.
Cramer, who has disclosed a position in Ethereum (CRYPTO: ETH), said his concerns begin with Tether (CRYPTO: USDT), a stablecoin that’s pegged to the U.S. dollar.
See Also: Why Bitcoin And Ethereum Are Trading Lower Today
Tether is the third-largest cryptocurrency by market value, trailing only Bitcoin (CRYPTO: BTC) and Etherereum.
“The problem with tether is that it’s backed by various holdings and roughly half of those are commercial paper — short-term loans — and much of that is believed to be, but we don’t know, Chinese commercial paper,” Cramer said, adding that even if Tether doesn’t any Evergrande exposure, as it claims, “tonnes” of Chinese businesses could get crushed due to the Evergrande exposure and that could trigger a fall of dominoes.
Why It Matters:
Cramer said it’s not just the Tether investors that are at risk but a fall in such a scenario is “going to gut the whole crypto ecosystem.” The former hedge fund manager said “if you own crypto in any form,” book some profits, implying such a fall would impact major cryptocurrencies like Bitcoin, Ethereum, Dogecoin and possibly even crypto-play stocks.
Bitcoin and Ethereum are trading significantly lower amid a broader market sell-off triggered by increasing concerns that Chinese property giant Evergrande’s current debt could lead to a collapse. Evergrande is a major property developer in China and also owns multiple other business units operating in industries such as healthcare services and electric vehicles. The company has more than $300 billion in total liabilities and recently warned investors it may default on its debts.
Price Action: BTC was trading 1.31% lower at $43,111.67 as of press time on Tuesday. ETH was up 1.2% at $3,041.75. Dogecoin (CRYPTO: DOGE) was trading 2.79% lower at $0.21.
For news coverage in French, Italian, or Spanish, check out Benzinga France, Benzinga Italia, or Benzinga España.
Photo by Tulane Public Relations on Wikimedia
