The GameStop stock market is another factor in the rise in bitcoin prices

The GameStop stock market is another factor in the rise in bitcoin prices
Investors make informed choices about certain investment targets.

An interesting situation occurred in the United States: subscribers of the Reddit channel, which has 2 million readers, decided to support the promotion of GameStop. This decision was made after analysts came to the conclusion that some mutual funds were dumping shares of this organization to a lesser extent.

However, when channel members began buying the stock, given Wall Street’s attitude toward GameStop, it rose 410% in five days (5 1 % in the last 2 4 hours), and the organization’s capital value exceeded $7 billion.

As a result, GameStop’s capitalization now exceeds that of the 14 companies listed in the U.S. Top 500 stock index (S & P 500). By the way, traders who speculated on the decline of GameStop stock were forced to close their positions with a loss of about $ 6 billion.

GameStop’s stock position received widespread support in the cryptocurrency community. Experts noted that in fact the rise in bitcoin price from December 2 0 2 0 to January 2 0 2 1 can be explained by the fact that a significant number of private investors perceive the cryptocurrency 1 as one of the objects of investment that meets the criteria of social responsibility. investment (E S G investment).

Bitcoin remains an extremely volatile device. However, some traders may be interested in undervaluing it. For example, Christopher Giancarlo, former head of the Commodity Futures Trading Committee (C F T C), said that the launch of bitcoin futures in December 2017 was aimed at severely devaluing the cryptocurrency 1 price.

Recall that the cryptocurrency market is now launching a futures market for Ethereum, which, at the very least, could cause strong price volatility for the digital device.