- Gamestop’s recent surge warrants a trip down memory lane.
- GME bulls could be the signal that the market has been waiting for.
GameStop (NYSE: GME) once again in the spotlight courtesy of its recent bullish breakout. This recent surge is reminiscent of the phase in 2021 when the markets started heating up.
GameStop’s price action has taken on a vertical liftoff in the last few days. For perspective, the stock was previously on an overall downtrend, not just this year but since its $81.25 peak in 2021. In fact, its latest rally looks eerily similar to its parabolic ascent in 2021.
GameStop’s bullish performance in 2021 was largely because some retail traders banded together and decided to flip the bird on highly leveraged institutional sellers shorting the stock. The whole thing quickly turned into a movement that almost brought the market to a stop and exposed some unfair practices in the institutional class of investors and regulators.
History appears to be repeating once again as a similar battle has erupted, involving GameStop shares. Bullish retailers now have the upper hand against the institutions and have been forcing shorts liquidations in plenty. A move that has resulted in more upside for the GME ticker. Take a look at this explanation if you are still in the dark about how things are playing out.
A must-watch explanation of what the whole #GameStop and #AMC “battle” is about.
And why it could be bigger than it seems, with the potential to blow up major institutions that are overleveraged to the tits.$GME $AMC #RoarTogetherpic.twitter.com/HZlA8Eck0n
— Colin Talks Crypto 🪙 (@ColinTCrypto) May 15, 2024
Will GameStop’s latest rally usher in the next phase of the crypto rally?
You may have noticed that the cryptocurrency markets have recently demonstrated a lot of sideways motion. This choppy performance indicates uncertainty and a lack of excitement in the market as investors contemplate the return of altcoin season. A trip down memory lane using the GameStop train could once again offer some insights into how things might unfold in H2 2024.
The 2021 GameStop rally occurred right in the middle of a crypto bull market. Cryptocurrencies also happen to be in the middle of a bullish cycle right now, despite the short-term uncertainty. This is an important observation because it could signal that excitement is coming back into the market.
Once those early investors cash out of GameStop, that liquidity could find its way into the crypto market. However, this is still within the realm of speculation and although it does signal potential excitement, it is worth noting that there are other factors such as high interest rates, still holding back liquidity.
