Cramer calls Bitcoin meltdown Crypto Monday, says many tech execs are calling it a hoax

Bitcoin offices in Istanbul, Turkey on May 11, 2022.

Umit Turhan Coskun/NurPhoto via Getty Images

CNBC’s Jim Cramer called Bitcoin’s collapse Crypto Monday, which he believes is Day 1 of a reckoning in the digital currency market.

Speaking off-air to tech industry executives during his trip to San Francisco last week, Cramer said he feels Silicon Valley thinks crypto is a scam and its promoters have taken a ton of money from unsuspecting investors . That revelation was just one of 15 things Cramer said while spending time in the West for the first time since the start of the Covid pandemic.

Cramer, who has invested some of his own money in crypto in recent years, said he was able to get his money out of ether, the world’s second-largest crypto, which plunged 20%. He said he basically broke his original investment.

Monday’s 17% plunge brought Bitcoin below $23,000. That’s a 66% plunge from its all-time high in November. The world’s largest cryptocurrency is no stranger to so-called crypto winters, which have given way to eventual rallies back to records. However, Cramer questioned whether those he dubbed “Bitco maniacs” would willingly enter the crypto market to stanch the bleeding like they have in the past.

The pain is widespread.

• Crypto exchange Coinbase lost 13% on Monday.
• A rival crypto exchange, Binance, temporarily paused bitcoin withdrawals “due to a stuck transaction that caused a backlog.”
• Crypto lender Celsius paused all account withdrawals and transfers, citing “extreme market conditions.”
• Microstrategy, led by Bitcoin evangelist Michael Saylor, whose company is heavily invested in the digital coin, lost 26%.

The collapse of Bitcoin and the entire crypto market are not systemic risks, but rather a “necessary purge of speculation,” Cramer said. His Charitable Trust, the portfolio for CNBC’s Investing Club, has no exposure to crypto or related stocks.

(See a full list of Jim Cramer’s Charitable Trust stocks here.)

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