Cramer dubs bitcoin collapse Crypto Monday, says many tech execs call it a con

Bitcoin offices in Istanbul, Turkey, on May 11, 2022.

Jim Cramer is worried about the first day of a digital currency market correction.

Cramer spoke off-air to tech executives during his trip to San Francisco last week, and he said he got the impression that Silicon Valley doesn't like the idea of a digital asset being a Ponzi scheme. Cramer spent time out West for the first time since the start of the Covid epidemic and he learned a lot.

Cramer said he was able to get his money out of ether, which was tanking, because he put some of his own money into it. He said he lost money on his initial investment.

Monday saw a plunge in the price of the virtual currency. Back in November, it was at its all-time high. The world's largest coin is no stranger to winters like the one that gave way to recovery. Cramer wondered if Bitco maniacs would come into the market to stop the bleeding.

There is a chart.

Line chart with 361 data points.The chart has 1 X axis displaying Time. Range: 2021-06-17 00:00:00 to 2022-06-12 00:00:00.The chart has 1 Y axis displaying values. Range: 20000 to 70000.End of interactive chart.

There is a lot of pain.

• Crypto exchange Coinbase lost 13% on Monday.
• A rival crypto exchange, Binance, temporarily paused bitcoin withdrawals “due to a stuck transaction causing a backlog.”
• Crypto lender Celsius paused all account withdrawals and transfers, citing “extreme market conditions.”
• Microstrategy, led by bitcoin evangelist Michael Saylor whose company is heavily invested in the digital coin, lost 26%.

Cramer said that the plunge in the market is not a systemic risk. His Charitable Trust is part of CNBC's Investing Club and has no exposure to the stock market.

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