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Author: Zoltan Vardai, Cointelegraph; Compilation: Baishui, Bitchain Vision
GameStop’s stock price exceeded Bitcoin’s annual return in one day.Will some profits enter the altcoin market, similar to the previous bull market cycle?
GameStop stock surpasses BTC’s annual return in one day
According to TradingView data, on the annual chart,GameStop stocks have increased by more than 154%, while Bitcoin has returned more than 129% annually.
Source: TradingView
Most of GameStop’s returns have been concentrated in the past two days, with GameStop’s price gaining more than 105% as of May 14 at 2:35 pm UTC.
Keith Gill, widely regarded as the initiator of GameStop short squeeze in 2021, started rising from May 13 after accidentally returning to social media after nearly three years of interruption.
Source: TradingView
Jill was the centerpiece of GameStop legend during the pandemic, and retail traders overwhelmed the hedge funds that shorted the stock.The craze has resulted in GameStop stock gains more than 1,000% monthly.
In the 24 hours after Gil returned to X, GameStop’s share price rose 111%, while Dogecoin and Shiba Inu rose 6.2% and 5.4% respectively in the same time period.
Will GameStop’s profits catalyze the “copy season” of 2024?
Considering that GameStop short squeeze triggered an altcoin rebound shortly after it was shortly after it was closed in the 2021 cycle,The return of GameStop legend ignites new hope for altcoins.
According to a May 14 post by cryptocurrency analyst CryptoAmsterdam, the 2021 altcoin rebound was catalyzed immediately after GameStop’s rebound, according to historical chart patterns:
“The blue on the left is the rise and top of GME in 2021. The blue on the right is the trend of altcoins after the event. Funds are always flowing.”
Source: CryptoAmsterdam
CryptoAmsterdam noted in a subsequent X post that the current market value of altcoins is also similar to the 2021 catalyzed altcoins bull market cycle and quoted the following figure.
Source: CryptoAmsterdam
The potential rebound is consistent with Rekt Capital’s analysis, which is expected toAltcoins will bottom around the beginning of June (before the altcoin season begins).Rekt Capital wrote in a May 8 post:
“Altcoins are following the plan perfectly. The altcoins bottomed out in early February. During the Bitcoin halving, the altcoins were sold. In the future, the altcoins will bottom out in early summer.”
Altcoin speculation cycle.Source: Rekt Capital
While most altcoins have not yet reacted to GameStop’s rally, some meme coins have gained momentum due to this legendary event.On May 13, the day after Jill returned to social media, Pepe hit an all-time high of more than $0.000010.
However, the investment environment today is different, eToro market analyst Josh Gilbert said,Short positions on GameStop are much smaller than in 2021, which could significantly dampen the “size of the rise”.
“The current environment is incomparable to 2021, when interest rates were at the lowest level, governments provided fiscal stimulus around the world, and there was little inflation in major economies,” Gilbert noted.
