GameStop shares surpassed Bitcoin’s (BTC) annual returns within a single day. can I
GameStop shares surpassed Bitcoin’s (BTC) annual returns within a single day. Could a portion of the profits find themselves in the altcoin market, similar to the previous bull cycle?
GameStop stock beats BTC’s annual returns in one day
On the yearly chart, GameStop stock returns are up more than 154%, compared to Bitcoin’s annual returns of more than 129%, according to TradingView.
Most of GameStop’s returns have come over the past two days, with GameStop’s price rising more than 105% on May 14, as of 2:35 PM UTC.
GameStop’s price began rising on May 13, after Keith Gill — the man widely credited with sparking the 2021 GameStop short squeeze — unexpectedly returned to social media after a nearly three-year hiatus.
Gill was at the center of the GameStop saga during the COVID-19 pandemic, which saw retail traders beat up hedge funds and lead to short-selling of the stock. This frenzy led to a monthly increase in GameStop stock prices of more than 1,000%.
In the 24 hours following Generation’s return to
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The return of the GameStop saga has ignited new hope for altcoins, considering that during the 2021 cycle, the altcoin rally was triggered shortly after the GameStop short squeeze.
Based on historical chart patterns, the 2021 altcoin rally was triggered immediately after the GameStop rally, according to cryptocurrency analyst CryptoAmsterdam on May 14. attack:
“The blue on the left is the GME pump and high in 2021. The blue on the right is what happened to altcoins after that event. “The money is always flowing.”
The current market cap of altcoins is also positioned in a similar formation to the 2021 setup that spurred the bull cycle for altcoins, CryptoAmsterdam pointed out in a subsequent X post, referring to the chart below.
The potential rise is in line with Rekt Capital’s analysis, which expects altcoins to find their local bottom around the beginning of June, before the start of altcoin season. In a post dated May 8, Rekt Capital wrote:
“Altcoins are following the plan exactly. Altcoins bottomed in early February. Altcoins sold off around the halving of BTC. Altcoins bottom in early summer.”
While most altcoins did not react to GameStop’s rise, some memecoins gained traction thanks to the saga. Pepe (PEPE) reached a new all-time high of over $0.000010 on May 13, one day after Jill returned to social media.
However, the investment environment is different today, as outstanding short positions on GameStop are much smaller compared to 2021, which could significantly limit “the size of the move to the upside,” according to eToro market analyst Josh Gilbert.
Gilbert told Cointelegraph:
“The environment is not comparable to 2021 when interest rates were at their lowest levels, governments were providing fiscal stimulus globally, and inflation in major economies was minimal or non-existent.”
Related: Has XRP price bottomed out against Bitcoin?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
