Press "Enter" to skip to content

Why This Analyst Sees GameStop Rally As A Positive Backdrop For Bitcoin

Stocks of several companies including GameStop Corp. (NYSE: GME) are seeing a dizzying rally fueled by the users of the WallStreetBets community on Reddit.

While several experts, including Scion Capital’s Michael Burry, have termed the rally as “insane” and “dangerous,” there is at least one analyst who thinks this short squeeze can serve as a positive backdrop for Bitcoin (BTC).

What Happened: According to SkyBridge Capital’s Anthony Scaramucci, the GameStop rally is a symbol of decentralized finance and the low-cost trading led by retail investors is a sign of democratization of what was until now “an insular and highly concentrated business of money management,” Bloomberg reported.

“The activity in GameStop is more proof of concept that Bitcoin is going to work,” Scaramucci told the newswire. “How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance.”

As per the analyst, we are now in the age of the “micro investor” and those who don’t take it seriously will “get taken to the cleaners.”

Why It Matters: Bitcoin has itself seen a dizzying rally that saw it surge from trading below $10,000 levels in July last year to above $41,000 earlier this month.

The rally has muted since, paving way for altcoins, with Bitcoin trading at $31,236.80 at press time.

Several analysts are cautioning that while Bitcoin’s outlook may be bearish in the short-term, the long-term prospects remain positive.

Read Next: Why This Analyst Can See Ethereum Skyrocketing To $10,500

Photo courtesy: Ardfern via Wikimedia

Latest Ratings for GBTC

Date Firm Action From To
Feb 2018 Buckingham Initiates Coverage On Sell
Jul 2015 Wedbush Initiates Coverage on Outperform

View More Analyst Ratings for GBTC
View the Latest Analyst Ratings

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This post was originally published on this site

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *