As a crypto investor with some experience in the market, I’ve seen my fair share of wild rides, and the recent events surrounding GameStop and meme coins have been no exception. When I first heard that Citron Research was exiting its short position on GameStop, I couldn’t help but feel a sense of unease. While it’s true that the company had taken a significant loss, I couldn’t shake off the feeling that their bearish outlook on GameStop’s financials might still prove to be correct.
GameStop’s shares could experience a decline after a turbulent market trend, but Citron Research, headed by Andrew Left, is closing its bearish bet on the video game retailer. In a recent update on their platform, Citron Research announced their decision to exit the short position, expressing confidence that the company now possesses sufficient financial resources following its $4 billion cash injection.
Citron Research Exits GameStop Shorts, Compares GME To Meme Coins
As a research analyst, I’ve come to terms with Citron Research and Left’s acceptance of their losses in relation to GameStop. Yet, they persistently hold the view that despite having billions at their disposal, GameStop may not be sustainable in the long run. They attribute the recent market surge primarily to hype rather than any fundamental shift in the company’s financial situation.
Expert: Recognizing the market’s illogical behavior, Citron Research highlighted Dogecoin‘s extravagant valuation, which surpasses $20 billion according to CoinMarketCap’s latest data. This makes Dogecoin, a meme coin, the most valuable by market capitalization at present.
The researcher holds a pessimistic view towards GameStop’s financial health, leading them to believe that its performance is declining. This perspective justifies their earlier decision to sell the stock short.
Despite the possibility of another retail investor-led surge, similar to meme coin price explosions, Citron has decided to minimize their losses. Back in 2021, Citron Research had to accept losses when GameStop’s stock value dramatically increased.
When it was announced that Citron Research had closed their short positions on GameStop, the stock price for GME decreased. As a result, several popular meme coins within the crypto community, including PEPE, FLOKI, and ROAR, experienced similar declines in value.
Top Meme Coins Plunging After GME Shares Fall
According to data from CoinMarketCap, the majority of meme coins have experienced double-digit percentage declines over the past week. Roaring Kitty (ROAR), in particular, has dropped by 30% within the last seven days and is currently showing a loss over the previous day, as indicated by Coingecko’s data.
It’s intriguing that the value of the meme coin has dropped significantly shortly following Keith Gill’s much-awaited live stream, during which he didn’t share any major updates.
It’s yet uncertain if meme coins will bounce back following their recent decline. Some market observers speculate that the SEC’s inaction regarding “Roaring Kitty” might spark renewed interest, potentially leading to another wave of altcoins gaining popularity.
Meme coins are set to regain momentum, pushing their collective market capitalization past the $60 billion threshold once more. The recent downturn has resulted in a loss of approximately $8 billion from the total meme coin market cap.
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2024-06-14 03:11