Jim Cramer, of CNBC, said Wednesday that he is worried since the lack of sellers of bitcoin and other cryptographic assets has reached a “messianic” moment.
“Right now there are so many cult assets – Coinbase, cryptocurrencies, meme stocks, non-fungible tokens – that true believers absolutely refuse to sell,” said the host of “Crazy Money.” “Instead, they throw away everything else they own, which puts real pressure on the rest of the market, and that’s not a good sign.”
The comments come after Wall Street welcomed the direct listing of Coinbase, the cryptocurrency exchange that jumped by more than 30% when it debuted on the market.
Cramer, who is optimistic about Coinbase, approved the company as the best piece for mutual funds seeking exposure to digital currency.
However, messianic trading, which came to light with Wall Street Bets’ support for actions such as GameStop, is also bleeding in the crypto space, he said.
“There is a cohort in this market that seems to think it’s a shame to … sell anything, because you own shares [or cryptocurrency] it’s a cause and the sale means you’re betraying that cause, “Cramer said.” It starts to make me wonder if some of these followers are mentally quarantined, especially in terms of their ability to ignore any sign that maybe it’s enough. “
The comments come after a mixed day of trading on Wall Street.
The Dow Jones added about 53 points, or 0.15%, to close at 33,730.89. The S&P 500 and Nasdaq Composite both fell below 1%.