Jim Cramer, host of CNBC’s Mad Money and financial commentator, explained on his X platform account why he thinks the current market selloff is underway. The stock market is plunging and sinking into the red, dragging the cryptocurrency market down with it.
Jim Cramer clarifies the current market situation
With both the stock and cryptocurrency markets in the red, Cramer believes the bloodbath is being caused by the selloff of the following assets: anything related to AI and computing, as well as real estate, oil and “some infrastructure-related companies.”
The cryptocurrency market leader, , is down 4.6% in the last 24 hours (with a 1% rally eliminated today). The S&P 500 index fell 6.88 (0.12%) today.
Cramer’s tweet about the AI-related sale came in light of the U.S. Justice Department beginning to subpoena chipmaker giant Nvidia (NASDAQ:) as part of its escalating antitrust investigation.
Nvidia’s position in the 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.
According to Bloomberg, the US Department of Justice has subpoenaed not only Nvidia, but also several other chipmakers, on suspicion of violating antitrust laws. The US government is about to file a formal complaint against Nvidia.
Unpacking the bearish month of September?
Historically, September has been a bearish month over the past 10 years, while October and November have been largely bullish. Traders call October “Uptober” for this reason.
In this context, September has only just begun and the current trend seems to follow the “traditional” bearish scenario. In October, Bitcoin increased by 40% and 50%, the highest level in the last 10 years.
However, Bitcoin maximalist Samson Mow doubts that this bearish September concept is accurate for BTC. In today’s tweet, he shared several key reasons why he expects the world’s flagship cryptocurrency to surge despite all the bearish predictions and expectations for September.
Mow believes that “underfunded pension funds” are likely to allocate their hundreds of billions of dollars to Bitcoin. MicroStrategy, he expects, will likely continue to issue senior convertible bonds to offer more debt to investors to raise money to buy more Bitcoin.
This article was originally published on U.Today
