Bitcoin
Why Bitcoin Didn’t Join the Latest Meme Stock Fad This Week
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Bitcoin isn’t tracking meme stocks like it did three years ago, although this week’s stock market action could indicate that a major crypto rally is on the way.
GameStop and other meme stocks AMC Entertainment are up more than 160% in the last two days. Meanwhile, bitcoin remains little changed, falling just 0.1% over the same period, according to Coin Metrics. In 2021, on the other hand, GameStop and AMC rose 821% and 373%, respectively, from January to April. Bitcoin’s gains over this period, although more modest, still reached 96%.
“This is not 2021, when the world was locked down and flooded with liquidity,” said Antoni Trenchev, co-founder of cryptocurrency exchange Nexo. “It’s worth remembering that GameStop mania peaked in January 2021, well before Bitcoin’s $60,000-plus highs in April and November of that year. If you want to read the events of the last 24 hours, you might suggest that GameStop may be acting as a leading indicator. the next leg of bitcoin’s post-halving run.”
“Today’s stronger-than-estimated U.S. producer price data is a reminder that the macroeconomic outlook[economic] and the inflationary backdrop is not conducive to a bitcoin rally, and is likely to remain capped after an explosive open until 2024,” he added.
To be sure, there is a world of cryptocurrencies beyond bitcoin that includes meme coins. Even so, they did not join the party in the same way. Dogecoin It is Shiba Inu coins are up about 3% each over the past two days, according to Coin Metrics.
Bitcoin is widely considered to be in a class of its own in the crypto world, driven by macro factors when there are no specific catalysts to consider, such as the launch of bitcoin exchange trade funds in the US or the Bitcoin halving that occurs every four years. .
Noelle Acheson, an economist and author of the “Crypto is Macro Now” newsletter, added that the run on meme stocks was “more of a revving of the engines than a complete takeoff” and that macro issues are still putting pressure on bitcoin.
“Tomorrow’s inflation data could lift sentiment if it is better than expected, but uncertainty is high,” she said.
This year, the US allowed the introduction of the first bitcoin ETFs, driven largely by BlackRock, the world’s largest asset manager. The funds are expected to attract new types of investors and steady flows of new money while reducing volatility. Additionally, the 2023 US regional banking crisis, which kicked off the current bitcoin cycle, has turned many people to the potential of cryptocurrency as an alternative financial system and hedge against uncertainty.
“Bitcoin is no longer seen as a purely speculative asset,” said Acheson. “Its store of value narrative is more deeply rooted, its holder base is much broader and it has become, to some extent, institutionalized.”
Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, added that although bitcoin was “added to the meme stock category” in 2021, the market is starting to show signs that it is being taken more seriously now.
“There has been a shift toward credibility in the longevity of bitcoin ownership,” she said. “Bitcoin has become more commercial in its ETF wrapper, and both retail and institutional investors tend to hold both Bitcoin and Ether rather than trading them daily like meme stocks.”
With bitcoin’s recovery so far in the first quarter of the year, briefly approaching $73,000, has more recently been pulling back in what many investors describe as a healthy move. With few catalysts and challenged by macroeconomic headwinds, these investors also warn that the lull in the price of bitcoin could last a few more monthsand perhaps push prices even lower.
“These periods of consolidation can last a long time and are extremely monotonous,” Trenchev said. “The bitcoin narrative has dried up… and I wouldn’t expect the revival of the meme stock frenzy to be a catalyst for bitcoin’s next move.”
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came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
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Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.
How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.
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Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.
The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.
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