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 have been on GameStop (GME) price volatility this week.
By comparison, GME has topped BTC’s gains so far this year, up more than 3,000%, with some analysts calling the mind-boggling rally “dangerous.”
GameStop: Too many wins to manage?
Data from Cointelegraph Markets and Tradingview showed BTC / USD was suffering from selling pressure in the 24 hours through Wednesday, trading at around $ 30,900 at the time of writing.
A classic consolidation move for Bitcoin, variable price behavior followed a brief spurt of volatility in which the larger cryptocurrency broke the $ 30,000 support, only to then rise to see the rejection at $ 35,000.
While mainstream media accounts of his performance were more mixed than ever, attention had already been focused on another asset that commentators considered more concerning. GameStop, the penny stock which generated nearly 700% gains in two weeks, is expected to be investigated by US regulators.
A tweet from Elon Musk also propelled GME stock higher in after-hours trading.
Gamestonk !! https://t.co/RZtkDzAewJ
– Elon Musk (@elonmusk) January 26, 2021
Well-known investor Michael Burry, who has taken a stand on GameStop himself, warned in a now-deleted tweet quoted by Bloomberg on Tuesday:
“If I put $ GME on your radar and you’ve done right, I’m really happy for you. However, what is happening now – there should be legal and regulatory implications. It is unnatural, senseless and dangerous. “
Scaramucci: GameStop means Bitcoin will “work”
For Bitcoin supporters, however, it was the style and not the substance behind the investment that was worth noting.
Anthony Scaramucci, founder of SkyBridge Capital, which has an allocation of $ 385 million in BTC, pointed to the involvement of retail investors in GameStop’s boom as well as its social media genesis as proof of the changing face of the market.
“The activity in GameStop is further proof of the concept that Bitcoin is going to work,” he told Bloomberg.
“How are you going to beat this decentralized crowd?” For me, it’s more of a statement about decentralized finance.
Trading volumes for GameStop beat Bitcoin by a considerable margin in the past day, reaching $ 20 billion from $ 13 billion for BTC.
“This is the age of the micro-investor and you better take it seriously or else you’ll be taken to the cleaners,” Scaramucci added.
As Cointelegraph reported, a lull in the Bitcoin bull market quickly took hold of trading activity, which instead began to focus on altcoins behind Ether (ETH), setting new historic highs this week.