Bitcoin (BTC) showed little sign of improvement on January 27, but a large fund believes it will benefit from new trends among investors. At the same time, all eyes were on GameStop (GME) price volatility this week.
By comparison, GME has lowered BTC’s gains so far this year, by over 3,000% per cent, with some analysts calling the jaw-dropping rally “dangerous”.
GameStop: Too many winnings to deal with?
Data from Cointelegraph Markets and Tradingview showed that BTC / USD suffered selling pressure in the 24 hours through Wednesday, trading at around $ 30,900 at the time of this publication.
A classic Bitcoin consolidation move, price change behavior followed a brief spurt in volatility in which the largest cryptocurrency broke the $ 30,000 support, only to rise and then see the rejection at $ 35,000.
Although traditional media narratives about his performance were as mixed as ever, attention had already focused on another asset that commentators decided to be more worrying. GameStop, the stock that generated gains of almost 700% in two weeks, should be investigated by regulators in the United States.
A tweet from Elon Musk also boosted GME’s stock market after-hours.
Gamestonk !! https://t.co/RZtkDzAewJ
– Elon Musk (@elonmusk) January 26, 2021
Well-known investor Michael Burry, who took a position at GameStop, warned in a now deleted tweet quoted by Bloomberg on Tuesday:
“If I put $ GME on your radar, and you do well, I’m genuinely happy for you. However, what is happening now – there must be legal and regulatory repercussions. This is not natural, insane and dangerous. “
Scaramucci: GameStop means that Bitcoin “will work”
For Bitcoin proponents, however, it was the style, not the substance behind the investment, that was worth noting.
Anthony Scaramucci, founder of SkyBridge Capital, which has a $ 385 million BTC allocation, highlighted the retail investor’s participation in the GameStop boom, as well as his social media genesis as evidence of the changing face of the market.
“GameStop activity is further proof of concept that Bitcoin will work,” he told Bloomberg.
“How are you going to beat this decentralized crowd? This to me is more of a statement about decentralized finance. “
GameStop’s trading volumes surpassed Bitcoin by a considerable margin the previous day, reaching $ 20 billion compared to $ 13 billion for BTC.
“It is the age of the micro-investor and you better take it seriously, otherwise you will be taken to the laundry,” added Scaramucci.
As reported by Cointelegraph, a lull in the Bitcoin bull market soon took the breath away from trading activity, which instead began to focus on altcoins on the back of Ether (ETH), setting new highs this week.