U.Today – CNBC's Mad Money host and financial commentator Jim Cramer has taken to his account on the X platform to share why he thinks the current sell-off in the markets is happening. The stock market is sinking into the red, dragging the cryptocurrency market down with it.
Jim Cramer clarifies the current market sell-off
While both the stock and cryptocurrency markets are in the red, Cramer believes the bloodbath is being caused by the sell-off of the following assets: everything to do with AI and computing, as well as housing, oil and “some companies leveraged in infrastructure.”
Crypto market leader, , is down 4.6% over the past 24 hours (with a 1% recovery wiped out today). The S&P 500 index is down 6.88 (0.12%) today.
Cramer's tweet about the AI-related sell-off came as the U.S. Department of Justice began subpoenaing chip-producing giant Nvidia (NASDAQ:NV) as part of its growing antitrust investigation.
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.
According to Bloomberg, the US Department of Justice has not only subpoenaed Nvidia, but also other chip companies, as they are suspected of violating antitrust laws. The US government is on the verge of filing a formal complaint against Nvidia.
Is a bearish September approaching?
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 just started, the current sell-off seems to follow the “traditional” bearish scenario. As for October, Bitcoin was up 40% and 50%, the highest level in the past 10 years.
However, Bitcoin bull Samson Mow doubts that this bearish September concept is accurate when it comes to BTC. In today’s tweet, he shared several key reasons why he expects the world’s flagship cryptocurrency to rise despite all the bearish September predictions and expectations.
Mow believes that “underfunded pension funds” are likely to allocate their hundreds of billions of dollars into Bitcoin. He expects MicroStrategy to continue issuing senior convertible bonds to offer more debt to investors in order to raise money to buy more Bitcoin.
This article was originally published on U.Today
