CNBC’s Jim Cramer said Wednesday that he’s growing worried as the dearth of sellers in bitcoin and other crypto assets has reached a “messianic” moment.
“Right now there are so many cult-assets — Coinbase, cryptocurrencies, meme stocks, non-fungible-tokens — that the true believers absolutely refuse to sell,” the “Mad Money” host said. “They’re dumping everything else they own instead and that’s putting real pressure on the rest of the market, and that is not a good sign.”
The comments come after Wall Street welcomed the direct listing of Coinbase, the cryptocurrency exchange that jumped more than 30% in its market debut.
Cramer, who is bullish on Coinbase, endorsed the company as the best play for mutual funds seeking exposure to digital currency.
However, messianic trading, which came to light through the Wall Street Bets crowd’s backing of stocks like GameStop, is also bleeding into the crypto space, he said.
“There’s a cohort in this market that seems to believe it’s a sin to … sell anything at all because owning stocks [or cryptocurrency] is a cause and selling means you’re betraying that cause,” Cramer said. “It’s starting to make me wonder if some of these followers are on a mental quarantine, especially in their ability to ignore any sign that maybe enough is 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 slid less than 1%.