Bitcoin (BTC) showed little sign of improvement on January 27, but one large fund believes it will benefit from new trends among investors. At the same time, all eyes are on the price volatility of GameStop (GME) this week.
By comparison, GME has so far this year seen an increase in BTC increase of more than 3,000%, and some analysts call the jaw ‘dangerous’. ”
GameStop: too many wins to handle?
Data from Cointelegraph Markets and Tradingview showed that BTC / USD had pressure below the 24-hour to Wednesday sell-off.
A classic consolidation move for Bitcoin, the fluctuating price behavior followed a brief volatility in which the largest cryptocurrency broke $ 30,000 support, only to rise to then see rejection at $ 35,000.
Although the main stories in the media about the show were as mixed as ever, the attention was already focused on another asset that touched commentators more. GameStop, the penny stock that made nearly 700% profit in two weeks, needs to be investigated by US regulators.
An Elon Musk tweet also caused GME shares to rise higher in the after-hours trading.
Gamestonk !! https://t.co/RZtkDzAewJ
– Elon Musk (@elonmusk) 26 January 2021
Well-known investor Michael Burry, who himself took a position in GameStop, warned in a recently removed tweet quoted by Bloomberg:
‘If I put $ GME on your radar, and you did well, I’m really happy for you. What is going on now, however, must have legal and regulatory implications. It is unnatural, insane and dangerous. ”
Scaramucci: GameStop means Bitcoin will “work”
For Bitcoin proponents, however, it was the style and not a substance behind the investment.
Anthony Scaramucci, founder of SkyBridge Capital, with a $ 385 million BTC allocation, highlighted the participation of retail investors in the GameStop boom as well as the emergence of social media as proof of the changing face of the market.
“The activity in GameStop is better proof that Bitcoin is going to work,” he told Bloomberg.
‘How are you going to beat the decentralized crowd? This is for me more confirmation of decentralized finance. ”
The trading volumes for GameStop have beaten Bitcoin by a significant margin over the past day and $ 20 billion compared to $ 13 billion for BTC.
“This is the age of the micro-investor and you have to take it seriously, otherwise you will be taken to the cleaners,” Scaramucci added.
As Cointelegraph reported, a calm in the Bitcoin bull market soon took the wind out of trading activity, which instead started focusing on altcoins at the back of Ether (ETH) setting new highs this week.