GameStop tops Bitcoin’s annual gains in one day – Will GME spark an altcoin rally?
Shares of GameStop surpassed Bitcoin (BTC) in annual revenue in one day. Could part of the profit be found in the altcoin market similar to the previous bull cycle?
GameStop's stock is worth more than BTC's annual earnings in one day
On a yearly chart, GameStop shares have returned more than 154%, compared to Bitcoin's more than 129% annualized returns, according to TradingView.
Most of GameStop's returns have come in the past two days, with GameStop's stock up more than 105% on May 14 as of 2:35 PM UTC.
GameStop's stock started to rise on May 13 after Keith Gill — the man widely credited with launching the 2021 GameStop short squeeze — made an unexpected return to social media after a nearly three-year hiatus.
During the Covid-19 pandemic, Gill was at the center of the GameStop saga, which shorted the retailer's stock when it beat hedge funds. The frenzy has resulted in a more than 1,000% monthly price increase for GameStop stock.
In the 24 hours since Gil's return to X, GameStop shares have surged as much as 111%, while Dogecoin (DOGE) and Shiba Inu token (SHIB) have gained 6.2% and 5.4% over the same period.
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Will GameStop's Profits Fuel the 2024 “altszn”?
Considering that the altcoin rally was sparked during the 2021 cycle after GameStop's brief squeeze, the return of the GameStop saga has given new hope to altcoins.
Based on historical chart patterns, the 2021 altcoin rally changed after the GameStop rally, according to crypto analyst CryptoAmsterdam's May 14 post:
“The blue on the left is the GME pump and high in 2021. The blue on the right is what happened to altcoins after that event. Money will always flow.”
The current market capitalization of altcoins is also positioned in the same way that the 2021 position of the altcoin bull cycle developed, CryptoAmsterdam explained in the next X post, referring to the chart below.
A possible rally is similar to Rect Capital's analysis, which expects altcoins to reach their local bottom around early June before the start of the altcoin season. In a May 8th post, Rekt Capital wrote:
“Altcoins are following the plan perfectly. Altcoins crashed in early February. Altcoins sold off around BTC Halving. Altcoins all the way down in early summer.”
While most altcoins didn't respond to GameStop's rally, some memecoins did thanks to Saga. Pepe (PEPE) hit an all-time high of over $0.000010 on May 13, a day after Gil's return to social media.
However, according to eToro market analyst Josh Gilbert, the investment environment is different today, with the impressive shorts on GameStop much smaller compared to 2021, which could significantly reduce “the amount of upside.”
Gilbert told Cointelegraph:
The environment is not comparable to 2021, when interest rates were at low levels, governments around the world were providing fiscal stimulus and major economies were experiencing no inflation.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
