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Market Veteran Jim Cramer's Latest Update May Be Key to Trading Safe, Here's How

Tue, 02/28/2023 - 13:45
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Godfrey Benjamin
Top market analyst Jim Cramer says market has no real rally
Market Veteran Jim Cramer's Latest Update May Be Key to Trading Safe, Here's How
Cover image via U.Today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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There is currently a strong correlation between the broader digital currency ecosystem and the U.S. stock market, with a visible sell-off rocking both markets at this time. Drawing on current trends, CNBC's Mad Money Host Jim Cramer discredited the previous short-term positive price fluctuations.

According to the veteran trader, the market will not experience any real rally until rates stabilize at any level.

The stock market is very sensitive to changes in monetary rates as instituted by the United States Federal Reserve. With the massive inflation being recorded over the past year, the Feds have been very uptight in increasing interest rates. Over the past two meetings of the Federal Open Market Committee (FOMC), Fed officials have tapered down on their rate hikes by 50 and 25 basis points, respectively.

With the recently released Personal Consumption Expenditure (PCE) Index, the Fed's preferred inflation gauge, a 5.4% growth year-on-year was recorded, fueling the likelihood of a return to hawkish rate hikes.

Jim Cramer Explains What’s Behind Recent Crypto Surge

To Jim Cramer, until these interest rate hikes are stable, market growth momentum will be erratic and largely unpredictable.

How can traders learn from this

Understanding that there is massive volatility that may be extended into the midterm can give crypto traders a sense of caution and a push to hedge their bets as safely as possible in all of their positions.

Cramer is a pan-market analyst whose counsel has not necessarily been favorable to crypto bulls as he leans more pessimistic as far as the digital currency ecosystem is concerned. Cramer is now one of the top vocal critics of Bitcoin as well as other crypto assets, advocating that investors should find the right time to offload their bags before everything turns to zero.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.