Jim Cramer Believes Crypto Hodlers Refusal To Sell Places Pressure On Stock Market
The popular CNBC TV presenter Jim Cramer had expressed mixed feelings over the attitude of cryptocurrency holders refusing to sell their digital assets.
Holders Attitude May Unsettle Crypto Market
The “Mad Money” host revealed that the attitude of cryptocurrency holders appears to be mounting pressure on the stock market.
Cramer observes that there is a growing trend in the crypto industry in which ardent holders of ‘cult-asset’ such as cryptocurrencies, meme stocks, non-fungible tokens, and Coinbase refuse to sell their digital assets.
Furthermore, he stated that many holders are seizing opportunities to amass more digital assets, thereby putting pressure on the market.
He added that the situation has gotten to a ‘messianic’ level because there seems to be a dearth of sellers of Bitcoin and other related digital assets.
In the same vein, Cramer commended the leading US cryptocurrency exchange, Coinbase, on Wednesday’s public listing on Nasdaq.
He stresses that the public listing of Coinbase stock is a good avenue for investors looking to enter digital currency. However, Cramer urges crypto holders refusing to sell their digital assets to be wary because they might be ignoring ominous signs.
He emphasizes that no one should paint a picture that selling digital assets is a sin. He recommends that holders should work with a target because they might have gotten to a point where it may be the best thing to sell.
Holders Emboldened To Keep Cryptocurrencies
As more retail and institutional investors enter the cryptocurrency industry, it appears that there are a number of factors emboldening holders to hold tight to their coins.
One of these reasons is the positive prediction about the price of Bitcoin.
Earlier, the leading US investment bank JP Morgan predicted that Bitcoin may hit $146,000, according to a Bloomberg report. The company envisaged that the digital asset may outweigh gold as an alternative store of value.
Interestingly, the confidence of holders has also been boosted by the steady rise in the price of Bitcoin, Ethereum, and other digital assets.
At press time, the two leading cryptocurrencies by market cap Bitcoin and Ethereum trade at $62,719 and $2,400 respectively.
However, the increasing adoption of cryptocurrency by giant institutions is also strengthening the confidence of investors.
Recently, Tesla’s billionaire CEO Elon Musk disclosed that holders of Bitcoin can now purchase Tesla cars with digital currency.
In the same vein, the Wall Street and Bank of New York (BNY) Mellon had incorporated the acceptance of cryptocurrencies into their financial transactions.
While holders will prefer to keep their digital assets because of the bullish moment, experts believe that cryptocurrencies are volatile, hence, investors should know when they should liquidate their holdings.