GameStop Surpasses Bitcoin’s Annual Returns in a Day, Yet Crypto’s Potential Spurs Greater Enthusiasm
GameStop surged by nearly 200% this week after the man who sparked its rally in 2021 returned to action to promote the meme stock on social media, a higher gain than Bitcoin’s over the past year. However, GameStop’s hype has died down and is gradually dipping today, as expected, but Bitcoin continues to trade above [...]
- GameStop surged by nearly 200% this week after the man who sparked its rally in 2021 returned to action to promote the meme stock on social media, a higher gain than Bitcoin’s over the past year.
- However, GameStop’s hype has died down and is gradually dipping today, as expected, but Bitcoin continues to trade above $64,000.
Three years since the meme stock mania took Wall Street by storm, GameStop and other meme stocks were at it again this week. The video game and consumer electronics firm saw its stock double in value following the return of the man who sparked its rally three years ago, leaving Bitcoin’s gains over the last year in the dust in just three days.
GameStop closed the market on Friday at $17.5 before surging 38% in premarket trading on Monday. The surge was sparked by the return of Keith Gill, whose videos in 2021 sparked a retail investor rally that pushed highly-shorted stocks like GameStop and AMC to record highs.
More popularly known as Roaring Kitty, he returned after a three-year hiatus with cryptic posts that touted GameStop as the stock that would deliver freedom to investors.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
On Monday, GameStop continued to soar, hitting a three-year high at $64.83, a 270% rise in just one trading day. The momentum was unsustainable, however, and on Tuesday, the stock dipped, and despite a short rally earlier today, GameStop traded at $33.6 a6 press time. From its year low at $10.2 in April, the stock has tripled at current prices.
GameStop Outperforms Bitcoin, But BTC Still the Better Investment
Meanwhile, Bitcoin trades at $64,333 at press time, gaining 4% in the past day as trading volume rebounded by 10% to hit $31 billion. As CNF reported, the market awaits the Fed’s release of its Consumer Price Index this week and its guidance on interest rates and the macroeconomic outlook, which could affect the prices of riskier assets like Bitcoin.
BTC has gained 135% over the last year, surging from $27,000. Since the year began, the top crypto has gained 52%. This means that in the past three days, GameStop has gained way more than Bitcoin has in the past year.
However, despite trailing GameStop, Bitcoin is still the better investment. For one, the gaming company has only recorded major gains in the past week and for most of the past year, most analysts have been urging traders to sell the stock.
Even now, when it’s one of the hottest stocks in the market, analysts are still urging users to sell before it’s too late.
“GameStop was not a fundamental value when it was $9 or $10. It wasn’t a fundamental value at $30. It’s not a fundamental value at $60,” says Steve Sosnick, the chief strategist of Interactive Brokers.
He reminded investors that “what you’re buying is just not worth the price you’re paying.”
Bitcoin, on the other hand, remains a recommended buy by most analysts. This is because its fundamentals are strong, and its gains aren’t down to the social media hype sparked by one speculator. Bitcoin is becoming increasingly mainstream, with the ETFs attracting the most prominent companies globally.
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