U.Today - CNBC Mad Money host, financial commentator Jim Cramer has taken to his account on the X platform to share why he believes the current sell-off on the markets is taking place. The stock market is plunging and sinking into the red, pulling the cryptocurrency market along with it.
Jim Cramer clarifies current market sell-off
While both stock and cryptocurrency markets are in the red, Cramer believes that the bloodbath is caused by sell-off of the following assets: everything to do with AI and computing, as well as housing, oil and “some companies leveraged to infrastructure.”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 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.
Bearish September unwrapping?
Historically, September has been a bearish month for the past 10 years, while October and November have been largely bullish. Traders call October “Uptober” for this reason.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.