While bitcoin has been the darling of non-traditional investments for a while, enticing the digital generation to invest and trade, there is a new movement on the block as GamStop stocks become hot property.
This seemingly obsolete stock has gained massive traction in defiance of a big Wall Street call, but it seems that the war between Redditors and Wall Street has taken its toll on Bitcoin as the price of the coin has dipped below $30,000 again.
This fall in price means that there is another retest of the floor needed, it could be a telling one for the continued rally of the cryptocurrency. The GameStop War could well have catalysed this drop in price, but will these Redditors come back to Bitcoin when the battle is done?
Riding it out
The impressive rally of Bitcoin from the latter end of last year through January has rightly cooled for a number of reasons. This latest fall, while a test of its levels, does not seem to have too many analysts too fearful.
“Another $30,000 retest for #Bitcoin,” Cointelegraph Markets analyst Michaël van de Poppe summarized.
For fellow trader Scott Melker, it was a case of “wait and see” until the longer time frames completed.
“6 hour looks the same as 4 hour. 12 hour needs 10 more hours, so barely worth watching. But the potential is there. Bottom line: no clear signal yet, but worth keeping an eye if they can build up,” he wrote in part of a series of tweets on Wednesday.
The resolution of current price action would, nonetheless, be a “moment of truth” for BTC/USD, he said.
Backing the little guys
Bitcoin has its roots in defying the capitalist status quo, and despite there being an embracing from Wall Street, fundamentally the coin is against such legacy in investing. At the same time, GameStop stock and movie theater chain AMC have been bolstered by those trying to get one over on the wolves on Wall Street.
AMC, which gained 240% in a day after avoiding bankruptcy is following GameStop stock which has skyrocketed in value after a ploy by a Wall Street analyst to short sell the stock backfired dramatically.
However, this ploy is still grinding up anti-Bitcoiners and pro traditional markets investors as they try to use this GameStop story as a warning to Bitcoiners.
“Attention #Bitcoin HODLers: The only people who will walk away with any real winnings from the #GameStop short-squeeze will be those smart enough to sell. Those who HODL will likely lose it all. Bitcoin HODLers will meet the same fate if they fail to realize their paper profits,” gold bug Peter Schiff tweeted.