Markets
What GameStop’s 70% Surge Means for Crypto – DL News
- GameStop is up more than 70% on Monday.
- Some crypto traders believe this is a sign that retail players are ready to enter the markets again.
- Others, however, fear that the focus will shift to cryptocurrencies and stocks.
This still happens. GameStop shares are up 73% on Monday, trading at prices not seen since November 2022.
The title soared thanks to a meme job by Keith Gill, aka Roaring Kitty, the trader turned folk hero who sparked GameStop’s previous trading mania in the early months of 2021.
And the video game company isn’t alone. Shares of the AMC movie theater chain jumped 48%.
Which begs the question: Are meme stocks making a comeback? GameStop’s new rise is a sign that retail players are once again taking an interest in the markets – and that they may soon turn to crypto.
“The last time GameStop hit the top after its gigantic rally, Dogecoin went up 100x in three months,” crypto trader Zion Thomas wrote on X.
Better known as Ansem, Thomas is credited with reporting smart calls to 400,000 subscribers. He notably praised Solana during its lowest levels of 2022 as well as dogwifhat during its debut. Since then, both have skyrocketed.
“Crypto has lacked new retail entrants throughout its journey,” said Quinn Thompson, founder of crypto hedge fund Lekker Capital. DL News.
The trauma caused by the collapse of cryptocurrency exchange FTX and the “general brutality” of the previous downturn is generally blamed on a lack of retail participation, Thompson said.
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“It makes sense that crypto memes would bid on the hope” that retail would return, Thompson added, although he cautioned that it was too early to tell whether that attention would last.
But not everyone is optimistic. Evgeny Gaevoy, founder and CEO of crypto market maker Wintermute, wrote that crypto could actually suffer from the rise of GameStop.
“The return of Roaring Kitty is bearish for crypto (shift in focus), right?” he job.
Whether or not retailers return to crypto in the long run, memecoin traders are cashing in on the hype. At least five memecoins named after GameStop, AMC and Gill have been launched since Gill posted his meme 18 hours ago.
Tom Carreras is a markets correspondent for DL News. Do you have a tip on GameStop and crypto? Contact us at tcarreras@dlnews.com