Jim Cramer is warning investors there could be more downside for crypto even after the market lost more than two-thirds of its combined value.
In a new interview on CNBC’s Squawk Box, Cramer says digital assets lack “real value,” and there’s nothing to stop further declines.
“There’s a lot of people in crypto. And crypto really does seem to be imploding. When it crossed from $3 trillion to $1 trillion, why should it stop at $1 trillion? There’s no real value there.”
The total market cap of the crypto industry currently sits at around $946 billion, down by about 69% from the all-time high market value of over $3.06 trillion recorded in November of 2021.
Cramer also says investors have incurred hundreds of millions of dollars in losses as crypto firms facing financial turbulence suspend or halt some of their services.
“You look at these companies you’ve never heard of and they blew up over the weekend. And you say to yourself, ‘Holy cow, that’s $600 million just gone down the drain.’”
Some of the troubled firms include digital assets broker Voyager Digital, crypto hedge fund Three Arrows Capital (3AC), and stablecoin issuer Terra (LUNA).
Last month, Cramer warned leading crypto asset Bitcoin (BTC) could fall to around $12,000, a level it last reached in October of 2020.
“I think [Bitcoin] goes to $12,000, where it was before this whole fiasco began.”
Bitcoin is trading for $20,109 at time of writing.
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