According to Kramer's tweet, the S&P 500 stock index, which includes the 500 largest publicly traded companies by market capitalization, is heavily influenced by the speculative crypto market.
As Kramer put it, "the tail is wagging the dog." This means that a smaller and volatile market segment is beginning to affect a much larger system.
According to the presenter's observations, when the cryptocurrency exchange rate goes up, the stock market grows after it, and when the crypto market falls, stocks often decline. The cryptosceptic noted that this trend has been clearly evident over the past few weeks.
The recent drop in global markets has occurred against the backdrop of the trade war between the United States and China. Uncertainty about the policy of the US Federal Reserve System (FRS) on interest rates also contributed to the market downturn.
The host of the Thinking Crypto podcast, Tony Edward, asked Kramer to make a prediction that bitcoin would never reach $200,000, ether would not grow to $10,000, and XRP would rush to zero. The irony is that Kramer's bearish predictions may actually signal a major increase in these crypto assets.
Previously, Kramer often criticized cryptocurrencies, but last year he said that bitcoin should become an integral part of any investment portfolio in order to reduce financial risks due to the growing US government debt.