GameStop’s Revival: Anticipation Grows for a New Memecoin Bull Run

• Keith Gill makes another appearance after three years, triggering a huge demand for GameStop (GME) and forcing an unexpected price appreciation. 

• However, eToro’s market analyst does not foresee any significant impact on the long-term price of GME, claiming the global cost of living crisis is different from that of 2021. 

The memory of the unprecedented surge of GameStop’s shares (GME) in 2021 still remains fresh in the minds of investors. At that time, GME witnessed a staggering 1,000% in less than a month after individual investors embarked on a buying spree in a video game trailer’s shares via online message boards. 

Prior to that, the GME shares had lost a third of its value over the previous five years with investors betting the stock would fall. Interestingly, a former financial broker and analyst Keith Gill, known by the social media name Roaring Kitty was pointed out as one of the drivers of that significant bullish reversal, pushing him to fame in 2020 and 2021. However, the House Financial Services Committee in February 2021 called him to testify as part of an investigation regarding potential market manipulation. 

Three years after this incredible occurrence, Gill makes a sudden and unexpected appearance for the first time since June 2021, sparkling reactions as retail investors celebrate with comments like “he’s back”, and “just in time for the memecoin supercycle.” Expectedly, GME shares reacted with a 74.5% surge on Monday.

According to Birdeye data, GameStop spiked by 3,650% in a single day, causing a ripple effect on the crypto market with Dogecoin and Shiba Inu surging by 6.2% and 5.4% within the same time frame. Theater chain AMC Entertainment (AMC) also witnessed a 78% rally on Monday. However, the shares are not too far above their record low of 2.38 in April. 

eToro Market Analyst Does Not Expect Any Significant Rally

Contrary to the ongoing reactions, eToro market analyst Josh Gilbert believes that GME would not have it easy this time around. However, he admitted that a short-term rally could certainly be ignited.

I think it will certainly ignite some short-term moves from these assets, but it’s hard to see any longevity.

Also, Gilbert noted that the incredible shorts on assets like GameStop were smaller compared to the 2021 occurrence. This implies that the size of the move to the upside would equally be smaller. Per his observation, there is an ongoing global cost of living crisis, making it difficult for consumers to be in the same position as 2021. 

The environment is just not comparable to 2021 when interest rates were at rock bottom, governments were providing fiscal stimulus globally, and major economies had little to no inflation…We have 5.5% interest rates in the United States and there is a global cost of living crisis going on. Simply, consumers are unlikely to be in the same position as they were in 2021 and that has a huge impact on financial decisions.

Regardless, Gilbert believes that anything is possible as shown by the 14.5 million users on WallStreetBets in the last five years. 

Far from this conservative analysis, pseudonymous trader Travis has noted that a new wave of GameStop degens is purchasing meme coins and other cryptos via Robinhood, thanks to the recent collaboration between Uniswap and the decentralized exchange as formerly reported by Crypto News Flash.