Crypto Market Bloodbath Explanation Provided by Jim Cramer

Crypto Market Bloodbath Explanation Provided by Jim Cramer

The leader of the cryptocurrency market, Bitcoin, shows a 4.6% plunge in the past 24 hours (with a 1% recovery eliminated today). The S&P 500 index has fallen by 6.88 (0.12%) today.

Cramer’s tweet about the AI-related sell-off took place in light of the U.S. Department of Justice beginning to subpoena microchip-producing behemoth Nvidia (NASDAQ:NVDA) as part of the escalating anti-trust probe.

Nvidia’s position in the rapidly growing AI space has become dominant recently, with many AI development companies, including Elon Musk’s xAI, purchasing H100 chips to train their AI models.

The DoJ is subpoenaing not only Nvidia but also several other chip-producing companies since they are suspected of violating antitrust laws, according to Bloomberg. The U.S. government is now getting close to issuing a formal complaint against Nvidia.

In line with this, as September has only just started, the current sell-off seems to be following the “traditional” bearish scenario. As for Octobers, Bitcoin rose by 40% and 50% at the highest in the last 10 years.

However, Bitcoin maximalist Samson Mow doubts that this concept of bearish Septembers is accurate about BTC. In today’s tweet, he shared several key reasons why he expects the world’s flagship cryptocurrency to surge despite all the bearish September predictions and expectations.

Mow believes that “underfunded pension funds” are likely to allocate their hundreds of billions of dollars to Bitcoin. MicroStrategy, he expects, will certainly continue to issue convertible senior notes to offer more debt to investors in order to raise money to buy more Bitcoin.

This article was originally published on U.Today

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