Connect with us

Blockchain

Redditors Pump GameStop, Trading Halted for Bitcoin-like Volatility

Stocks in GameStop, the video game seller, have increased 83% this week, buoyed by vociferous traders on Reddit.

Avatar

Published

on

In brief

  • GameStop is a video game store that’s in the midst of closing hundreds of stores.
  • The stock price jumped to a record $65.01 today.
  • Redditors have been aggressively pumping the asset.

GameStop stock closed at a new record today of $65.01 after closing at $43.03 yesterday. Ten days ago, it wasn’t even worth $20—and five months ago, you could get a share for a fiver. 

That’s some Bitcoin-like growth for the video game retailer. Moreover, the 51% rise in the last day comes in the same form as a cryptocurrency pump scheme: vocal Redditors, urging others to buy, buy, buy—and blasting anyone with the temerity to sell in the midst of a rally.

The crew helped push the price up so rapidly that trading of the asset on the New York Stock Exchange was halted four times on Friday to let things cool down.

The r/wallstreetbets subreddit, which describes itself as “like 4chan found a Bloomberg terminal,” boasts two million users. And all of the posts in the top 10 as of Friday evening were devoted to stock in GameStop, which goes by the ticker GME.

One popular post features a meme of Mel Gibson as William Wallace in the movie “Braveheart” telling his motley army to hold. At the top, it says, “Fucking ban anyone who sells GME.” Oh, there are three rockets as well because it’s apparently going to the moon.

But there is a villain in this story—and it’s not the English, but a short-sell investment newsletter called Citron Research, which predicted GameStop would return to $20, likely because, well—check out the much sadder r/GameStop subreddit for the recollections of former employees.

“This is a failing mall-based retailer,” said Citron Founder Andrew Left yesterday, before GME rose another 50+%. “So the amount of people who are so passionate about putting GameStop higher, not on the basis of any fundamentals, it just shows the natural state of the market right now—or as [investor] Seth Klarman said it today, ‘a bunch of frogs in a pot of boiling water.’”

To which the Redditors said, “FUD!” There was no way a company that announced 400 to 450 store closures in September might be a bit overvalued when its stock catapulted above both General Mills and General Motors.

Citron has stopped commenting on GME stock after receiving so much hostility from Redditors, Left indicated.

To be fair, there is something to the price rise—investor Ryan Cohen, who co-founded petfood company Chewy, took control of three board seats last week. Cohen is expected to take the company from its spot near the food court into ecommerce.

Perhaps he can do Dogecoin next.

Source: https://decrypt.co/55113/redditors-pump-gamestop-trading-halted-for-bitcoin-like-volatility

Blockchain

Huobi Global Appoints Vincent Lau as New Managing Director

Huobi Global has announced the appointment of Vincent Lau as the company’s new Managing Director, who has significant experience working in the industry

Avatar

Published

on

Huobi Global has announced the appointment of Vincent Lau as the company’s new Managing Director, who has significant experience working in the industry

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.cryptoknowmics.com/news/huobi-global-appoints-vincent-lau-as-new-managing-director

Continue Reading

Blockchain

Cardano (ADA) price signals weakness after 10% dump

ADA/USD rebounds to $1.14 but still vulnerable after declining 10% over 24 hours Cardano…

The post Cardano (ADA) price signals weakness after 10% dump appeared first on Coin Journal.

Avatar

Published

on

ADA/USD rebounds to $1.14 but still vulnerable after declining 10% over 24 hours

Cardano dropped nearly 10% on Thursday to see lows of $1.07 and then continued to feel the bearish pressure in early trades today as prices touched support at $1.03.

The drop signalled some weakness in Cardano’s remarkable rally over the past few weeks, with the likely bearish turn starting to appear after bulls reached an all-time high of $1.48 last week.

At the time of writing, ADA/USD is trading around $1.12, with bulls displaying conviction in the past two hours.

If the upside signal strengthens, buyers could push for a break above $1.20 as they target higher levels. On the contrary, ADA could also drop to $1.00 or lower.

ADA/USD price short term outlook

ADA/USD broke below the support line of an ascending parallel channel and retested the 20-day exponential moving average at $1.08. While it completed a five-day downward streak, the decline to lows of $1.03 signalled further weakness.

Cardano’s price could thus see more losses if bulls fail to react and retake control above the lower boundary of the old channel.

The Relative Strength Indicator (RSI) hints at added downward pressure with bearish divergence, while MACD has the histogram printing below the signal line to suggest an influx of selling pressure if the indicator validates a bearish crossover.

ADA/USD daily chart. Source: TradingView

If ADA price turns negative from current levels, bulls will rely on a few key support levels to prevent further losses. The initial support lies at $1.08, which is where we have the 0.382 Fibonacci retracement level of the upswing from $0.43 to $1.48.

There’s also an ascending trend line (blue, dotted) near the Fib level and if bears break lower, the primary support is at the 20-day EMA ($1.06) and then the psychological $1.00 level.

Further rot for ADA/USD could see bulls battle to keep prices above the 0.5 Fib retracement level ($0.965) and the 0.618 Fib retracement level ($0.83).

On a positive note, ADA/USD remains in an uptrend and could very well make another all-time high in the short term if bulls hold above $1.00. This will call for buyers to break above immediate resistance at $1.14, with a run to $1.20 bringing into focus the 0.236 Fib level ($1.23).

A break into and continuation inside the rising channel could see prices rally to the apex resistance line, which extends past the all-time high of $1.48. From here, buyers can attempt to set another record. In this case, short-term targets are likely to be $1.60 and $2.00.

The post Cardano (ADA) price signals weakness after 10% dump appeared first on Coin Journal.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://coinjournal.net/news/cardano-ada-price-signals-weakness-after-10-dump/

Continue Reading

Blockchain

Bitcoin’s S&P 500 Correlation Is At 5-Month High, Is This Bearish For BTC?

Bitcoin’s S&P 500 correlation hits a 5-month high and some analysts consider this to be a bearish factor for the cryptocurrency but let’s see why in our today’s Bitcoin news. Bitcoin and the traditional financial markets were correlated highly n the past few months which was clearly seen over the past couple of weeks where […]

Avatar

Published

on

Bitcoin’s S&P 500 correlation hits a 5-month high and some analysts consider this to be a bearish factor for the cryptocurrency but let’s see why in our today’s Bitcoin news.

Bitcoin and the traditional financial markets were correlated highly n the past few months which was clearly seen over the past couple of weeks where the cryptocurrency followed stocks step by step. The data from crypto analytics resource skew showed that the realized correlation between Bitcoin’s S&P 500 correlation surged to a 5-month high which has happened back in November 2020. There are plenty of reasons why this could be the case but maybe the most obvious one is the involvement of institutional investors in the crypto space.

As reported plenty of times, the institutional interest in the asset class surge when companies started flooding the market. Grayscale for example saw its assets under management skyrocket over the past few months. The company’s CEO Michael Sonnenschein said that the institutional interest in BTC increased in 2021. In any case, there are many implications of the soaring correlation. The correlation to stocks shows a few things but the most important one was the fact that BTC fails as a hedge against the traditional finance systems so if BTC Is moving along with stocks, then it doesn’t serve as a hedge.

bitcoin S&P
Bitcoin – S&P 500 Realized Correlation. Source Skew

This has implications on its own and for example, we saw one reason for the 25% correction for BTC that was actually due to Wall Street crashing as well. Back then, NASDAQ had a slump and the catalyst was that the government bond yields gave some boost and investors favored companies that benefit the broader economic recovery, as Peter Tuz who was the president of Chase Investment Counsel, said:

 “Rates matter. At 1.5%, the yield is comparable to S&P 500 dividend yield. […] And there’s no capital risk with a 10-year, you’ll get your principal back. All of a sudden it’s competitive with stocks.”

As much as it is bearish, in the case of higher correlation the broader macroeconomic events need to be factored in the price formation of the cryptocurrency. The US House of Representatives passed another $1.9 trillion stimulus bill which will be another major injection in the economy if passed so we can only imagine what it will do to the stock markets.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.dcforecasts.com/bitcoin-news/bitcoins-sp-500-correlation-is-at-5-month-high-is-this-bearish-for-btc/

Continue Reading

Blockchain

Market Analysis Report (05 Mar 2021)

1Yield Farming ‘Craze’ Is Ending, Says Aave’s CEO | Goldman Sachs Survey Finds 22% of Respondents Expect Bitcoin to Surpass $100,000 | Dallas Mavericks to Accept Dogecoin for Tickets and Merchandise

Avatar

Published

on

1Yield Farming ‘Craze’ Is Ending, Says Aave’s CEO | Goldman Sachs Survey Finds 22% of Respondents Expect Bitcoin to Surpass $100,000 | Dallas Mavericks to Accept Dogecoin for Tickets and Merchandise Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.cryptocompare.com/email-updates/daily/2021/mar/05/

Continue Reading
Blockchain3 mins ago

Huobi Global Appoints Vincent Lau as New Managing Director

Blockchain7 mins ago

Cardano (ADA) price signals weakness after 10% dump

Blockchain21 mins ago

Bitcoin’s S&P 500 Correlation Is At 5-Month High, Is This Bearish For BTC?

Blockchain26 mins ago

Market Analysis Report (05 Mar 2021)

Blockchain31 mins ago

Chainlink Rolls Out Support For XDai Amid Rising Ethereum Fees

Blockchain37 mins ago

BTC Hovers Below $50K With The FED Expected To Address Bond Yields

Blockchain37 mins ago

Binance Coin, Neo, Enjin Price Analysis: 05 March

Blockchain43 mins ago

Ripple Tests Private Version Of XRP Ledger For CBDCs: Report

Blockchain49 mins ago

Bybit to Cease UK Operations in Compliance with FCA Ban

Blockchain57 mins ago

Coinsbit Has Launched A Unique Bitcoin Staking Pool With A Super High Rate As It Marks Its 3rd Anniversary

Blockchain59 mins ago

Bitfarms hints at massive expansion as it purchased 48,000 new ASIC miners from MicroBT

Blockchain1 hour ago

Centra Tech Founder Sentenced to 8-years in Prison For $36M Crypto ICO Fraud

Blockchain1 hour ago

Coinbase Registers Second 12K Bitcoin (BTC) Outflow In A Week, U.S. Institutional Buyers Holding Strongly

Blockchain1 hour ago

Crypto Advocates Seek to Head Off US Digital Currency Regulations

Blockchain2 hours ago

XRP holders suffer $15billion in damages due to SEC’s action, Ripple reports

Blockchain2 hours ago

Metis | Enabling Web 3.0 Through Easy-to-Use Layer 2 Next Generation Framework

Blockchain2 hours ago

Bitcoin Retraces After Bouncing, Falling Below $47,000

Blockchain2 hours ago

Ripple’s Asia expansion unaffected by SEC lawsuit, says CEO

Blockchain2 hours ago

Thailand’s largest movie theater chain accepts Bitcoin

Blockchain2 hours ago

Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

Blockchain2 hours ago

MicroStrategy Stock, Bitcoin Price Take a Synchronized Tumble

Blockchain3 hours ago

NBA team Dallas Mavericks to accept Dogecoin for payments.

Blockchain3 hours ago

Yield Protocol Listing in Gate.io

Blockchain3 hours ago

Dogecoin (DOGE) Gets a Boost with BitPay, Coinflip’s Payment Support

Blockchain3 hours ago

Should Tesla sell its Bitcoin position? Here’s a former Goldman Sachs exec’s take

Blockchain3 hours ago

DeFi, the future of Finance: How ‘Value DeFi’ is bringing Fairness, True Value and Innovation to Decentralized Finance

Blockchain3 hours ago

DOT & ADA Price Analysis: Will the Altcoins Flip to Their Previous Positions?

Blockchain3 hours ago

Bitcoin Cash Analysis: Risk of More Downsides Below $450

Blockchain3 hours ago

ETH/USD Price Analysis: ETH/USD Should Break Above $1500 Target on Its Way Past $2,000

Blockchain3 hours ago

Powell Comments Leaves Bitcoin Market Sour; Bearish Assault Ahead?

Trending