As an experienced financial analyst, I’ve witnessed my fair share of market volatility and unexpected rallies. However, the recent surge in GameStop (GME) and the meme coin sector has left even the most seasoned investors in awe.
GameStop Corporation (NYSE: GME) is once again making waves on Wall Street, causing quite a stir. On May 13, 2023, the price of GameStop (GME) surged by an impressive 75%, reaching $30.45 during trading hours. In addition, there was a significant increase of 21% in the GME stock price after the market closed. Remarkably, the value of the GameStop-related meme coin has skyrocketed by an astounding 2200% within the last day. This surge has also resulted in a robust rally for other meme coins as well.
GameStop Rally Triggers 2021-Like Meme Coin Party
As an analyst, I’ve observed some intriguing developments in the memecoin market this week based on data from Santiment. Notable breakouts and decouplings have emerged within the past 24 hours, leading to a significant surge in trading volumes among the top 50 assets in this sector. In fact, the volume has increased by over 34%. This meme coin sector has contributed a substantial $5 billion to investors’ wealth in just the last 24 hours. Among these coins, Dogecoin (DOGE) has experienced a 10% price surge.
The mem coins such as $PEPE, $MAGA, $MOG, $bitcoin-usd/”>BITCOIN, $PONKE, $PEPE2.0, $SPX, and $ANALOS are currently generating buzz and attracting substantial attention. These assets present intriguing possibilities for volatile price movements, underscoring the unpredictable character of the memecoin market. Keeping a watchful eye on these investments is advisable for investors.
Short Seller Losses Cross $1 Billion
In early 2021, during the pandemic, Reddit users, headed by Keith Gill, masterminded an astounding reversal against hedge funds that had been making money through short selling on GameStop (GME), which they believed was a faltering brick-and-mortar game retailer. This sudden wave of backing caused a monumental increase in GME’s price, soaring above 1,000% within just a few weeks.
As a researcher studying financial markets, I’ve observed an astonishing rise in GameStop’s stock price on Monday, resulting in significant losses approaching one billion dollars for those who had short-sold the stock, according to recent data from S3 Partners.
When GameStop’s stock price soared by 74%, hedge funds that had bet against it suffered a significant financial setback. Data from S3 Partners reveals that the total mark-to-market loss for these hedge funds amounted to $838 million.
As a crypto investor, I’ve noticed an unexpected surge in the stock price recently. This price hike seemed to be triggered by “Roaring Kitty,” an individual who rallyied a large following of day traders to invest in the gaming stock back in 2021 – a remarkable occurrence in Wall Street history. According to Ihor Dusaniwsky, managing director of predictive analytics at S3, we can anticipate short covering for this stock since it previously had a high squeeze score prior to today’s trading activities.
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2024-05-14 08:39