In recent days, popular financial market narrator Jim Cramer once again spoke about cryptocurrencies. It is not unusual for the CNBC host, but still, his words tend to get widespread attention among crypto market participants both from the memetic and analytical points of view.
This time, Cramer framed the sell-off as a two-front hit: the equity market punished hyperscalers and Nvidia despite strong fundamentals, while crypto collapsed under its own leverage.
His point is not about picking winners or losers but to argue that the market reaction to Nvidia was misplaced, and the more severe damage unfolded in digital assets, where overextended positions could not absorb another wave of forced selling.
With the crypto derivatives market suffering a $2.22 billion loss in just the last 24 hours, it is hard to argue with Cramer, despite all the willingness to turn the new post into another “Inverse Cramer” joke.
Bulls lose control, bears take over
The fact that $2 billion of those came from long exposure is even more stark proof of the thesis. Since early October, the price of Bitcoin lost over 30%, going all the way down to pre-$82,000 levels, yet bulls continue to inject literal billions in an attempt to catch the bottom.
As a result, another $2 billion in margin calls for buyers, which as Cramer says “get no pardon,” hinting obviously as to how, earlier this autumn, Binance founder Changpeng “CZ” Zhao got his pardon from the U.S.
Such dynamics show a market still governed by aggressive leverage, persistent mispricing and participants unwilling to acknowledge how fragile their positions have become during this downturn.
Source: https://u.today/jim-cramer-reveals-hidden-trigger-behind-this-weeks-crypto-bloodbath
