Stocks rebounded modestly Tuesday as investors looked to claw back losses from the biggest single-day decline in nearly four months amid concerns over the fate of China's indebted property giant Evergrande.
Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks discussed why it's time to sell some crypto investments and Tuesday's market.
Coinbase (COIN) on Monday dropped plans to launch its interest product after the Securities and Exchange Commission Chair Gary Gensler's comment.
The SEC had said it would sue the company over the Lend product and sent a Wells Notice to the crypto exchange a few weeks ago.
Cramer advised investors to take a little profit in cryptocurrencies.
"We may be at the high water mark of what these financial engineers can get away with. I think we have to fix this Tether [stable coin backed by Chinese debt]," said Cramer.
"We have to start recognizing if China is going to be in a slowdown, which it will be because of Evergrande, that's going to hurt the people who mine and trade, because a lot of the trading is in China," he added.
Cramer, in his personal capacity, sold his Bitcoin investments and kept Ethereum. He said that he was "waiting for it [Ethereum] to come down to buy some more."
Cramer said, "I was recommending for the very first time, in a very long time, that people short the market going into Friday. And I think this is when you want to cover because we're getting very oversold, but not long. It's covering to this decline from people who've bought stock at the absolute low and they flip it. It's kind of a rhythm."
None of the stocks mentioned in this story are key holdings in Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Cramer adds or removes stocks from the portfolio? Learn more now.