Altcoins
GameStop Tops Bitcoin’s Yearly Gains in One Day – Will GME Spark an Altcoin Rally? — TradingView News
GameStop shares have surpassed those of Bitcoin BTCUSD annual returns during the day. Could some of the profits end up in the altcoin market, like the previous bull cycle?
GameStop stock outperforms BTC’s annual returns in one day
On the annual chart, returns for GameStop shares rose more than 154%, compared to more than 129% for Bitcoin, according to TradingView.
Most of GameStop’s returns have occurred over the past two days, with GameStop’s price increasing by over 105% on May 14, at 2:35 p.m. UTC.
GameStop’s price began to rise on May 13, after Keith Gill – the man widely credited with starting the 2021 GameStop short squeeze – unexpectedly returned to social media after a nearly three-year hiatus.
Gill was at the center of the GameStop saga during the COVID-19 pandemic, which saw retail traders overpower hedge funds and short the stock. This craze led to a monthly increase in GameStop stock price of more than 1,000%.
In the 24 hours after Gil returned to X, shares of GameStop rose as much as 111%, while Dogecoin 
Will GameStop Profits Catalyze the Altszn of 2024?
The return of the GameStop saga has sparked new hope in altcoins, given that during the 2021 cycle, the altcoin rally was triggered shortly after the GameStop short squeeze.
Based on historical chart patterns, the 2021 altcoin rally was catalyzed right after the GameStop rally, according to crypto analyst CryptoAmsterdam’s May 14 X post:
“The blue on the left is the pump and top of GME in 2021. The blue on the right is what happened to altcoins after this event. The money is still flowing.
The current altcoin market cap is also positioned in a formation similar to the 2021 pattern that catalyzed the altcoin bull cycle, CryptoAmsterdam noted in a subsequent X article, referencing the chart below.
The potential rally is in line with analysis from Rekt Capital, which expects altcoins to hit their local lows around the start of June, before the start of the altcoin season. In a May 8 article, Rekt Capital wrote:
“Altcoins follow the plan perfectly. Altcoins reached their lowest level in early February. Altcoins sold off around the BTC halving. Altcoins bottom out in early summer.
While most altcoins have not reacted to the GameStop rally, some memecoins have gained momentum thanks to the saga. Pepe 
However, the investment environment is different today, with outstanding shorts on GameStop much smaller than in 2021, which could significantly dampen the “magnitude of upward movement,” according to the analyst at eToro market Josh Gilbert.
Gilbert told Cointelegraph:
“The environment simply does not compare to that of 2021, when interest rates were at their lowest, governments were implementing fiscal stimulus measures globally and major economies had little or no inflation. »
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.