Cramer warns crypto market mirrors dot-com bubble risks

Thursday 23 October 2025 - 17:20

By: Dakir Madiha

Cramer warns crypto market mirrors dot-com bubble risks

Jim Cramer, CNBC host, has issued stark warnings about the cryptocurrency market, drawing parallels to the speculative frenzy of the dot-com bubble in 2000. He urged investors to reduce their positions, citing the potential for significant losses. While acknowledging the possibility of a short-term rally, Cramer described the market as being in a "2000 speculative territory" and referred to it as an environment where "the cockroaches reside."

Bitcoin holds key support despite cautionary signals

Bitcoin demonstrated resilience on Wednesday, hovering around $108,000 and defending a critical technical support near $107,000. After previous weakness, the cryptocurrency bounced back near its 200-day exponential moving average, forming a hammer pattern. However, underlying vulnerabilities persist. The On-Balance Volume indicator has dropped to its lowest level since April, when Bitcoin traded near $94,000. Additionally, the weekly MACD histogram shows bearish signals, with momentum indicators nearing oversold conditions.

JPMorgan fund sparks speculative concerns

Cramer’s warning coincided with JPMorgan Chase’s launch of a $1.5 trillion Security and Resilience Initiative. Announced by CEO Jamie Dimon, the decade-long plan aims to bolster U.S. strategic industries like defense, energy, and advanced manufacturing, with $10 billion in direct investments from JPMorgan. The initiative seeks to reduce American reliance on foreign supply chains for critical minerals and manufacturing.

Dimon emphasized the importance of addressing vulnerabilities in U.S. supply chains, stating, "The U.S. has become painfully dependent on unreliable sources of critical minerals and products." However, Cramer suggested that the fund has inadvertently fueled risky speculation in the crypto market, drawing a connection between Dimon’s prior comments on eradicating “cockroaches” in private credit markets and the speculative surge in cryptocurrencies.

Crypto market at a technical crossroads

The cryptocurrency market remains precarious following its largest liquidation event on record earlier this month. On October 10, more than $20 billion in leveraged positions were wiped out after former President Trump announced 100% tariffs on Chinese imports. Over the past 24 hours, $499 million in liquidations have occurred, reflecting ongoing volatility. The Crypto Fear & Greed Index has improved slightly, moving up to 27 from "Extreme Fear."

Bitcoin’s price faces critical resistance at $115,000, while a drop below $104,000 could trigger a retest of the psychological $100,000 level. Mike Novogratz, CEO of Galaxy Digital, predicts Bitcoin will trade in a range between $100,000 and $125,000 unless major catalysts emerge.