GameStop stock price surpassed Bitcoin (BTC)’s annual return in one day. Could some of the profits be found in the altcoin market, similar to previous bull cycles?
GameStop stock surpasses BTC’s annual return in one day.
On a year-to-date chart, GameStop stock’s returns are up more than 154%, while Bitcoin’s year-to-date returns are over 129%, according to TradingView.
Most of GameStop’s gains have come in the past two days, with GameStop’s price up more than 105% on May 14 as of 2:35 PM UTC.
The price of GameStop began rising on May 13 after Keith Gill, widely credited with starting GameStop shorting in 2021, unexpectedly returned to social media after nearly three years.
Gill was at the center of the GameStop incident during the COVID-19 pandemic, which led retail traders to beat hedge funds and sell off the stock. The craze led to a monthly price increase of more than 1,000% for GameStop stock.
In the 24 hours following Gil’s return to
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Could GameStop Profits Prompt an “Altszn” in 2024?
The return of the GameStop series has brought new hope to altcoins, considering that the altcoin rally was sparked immediately after the GameStop short squeeze during the 2021 cycle.
Based on historical chart patterns, the 2021 altcoin rally was fueled immediately after the GameStop rally, according to cryptocurrency analyst CryptoAmsterdam’s May 14 post:
“The blue on the left is the 2021 GME pump and top. The blue on the right is what happened to the altcoin after that event. “Money always flows.”
Currently, altcoin market caps are positioned in a similar fashion to the 2021 setup that triggered the altcoin bull cycle, CryptoAmsterdam noted in a follow-up X post, referencing the chart below.
This potential rally is consistent with analysis by Rekt Capital, which expects altcoins to find a local bottom around early June, before altcoin season begins. In a May 8 X post, Rekt Capital wrote:
“Altcoins are following the plan perfectly. Altcoins bottomed out in early February. Altcoins were sold off around the time of the BTC halving. Altcoins will bottom in early summer.”
Most altcoins did not react to the GameStop rally, but some memecoins gained momentum thanks to the event. Pepe (PEPE) hit a new all-time high above $0.000010 on May 13, a day after Gill returned to social media.
But today’s investment environment is different. GameStop’s outstanding shorts are much smaller than they were in 2021, which could significantly suppress the “scale of the upward move,” according to eToro market analyst Josh Gilbert.
Gilbert told Cointelegraph:
“The current environment is nothing compared to 2021, when interest rates were at record lows, governments rolled out fiscal stimulus across the world, and major economies experienced little to no inflation.”
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.