Missed GameStop? There is Still Bitcoin
This has been a rough week for companies for shorting highs and lows, and with the release of quarterly and annual earnings reports for each company throughout the week, investors have been eyeing significant pullback opportunities in the market.
GameStop, a company that made quite a buzz last week in the market with soaring highs after a couple of Reddit members decided to push up the stocks, has gotten investors in quite a frenzy.
The GameStop Fiasco
GameStop has been around for a few years, and this company is primarily based on selling video games to its customers. Due to the shift in the trend where people now prefer to buy their stuff online, GameStop had been shutting down many of its outlets and filing for bankruptcy. This took place before the outbreak of Covid-19, when many of the businesses had to shut down after people started buying the essentials online.
When the Reddit members caught wind that the institutional investors were heavily betting against GameStop shares and making the prices fall lower, the members decided to increase the share price of GameStop, and this attracted more investors to buy the shares, greatly influencing the price. Wall Street did not like what had happened, and they started controlling the number of shares purchased by each investor. This completely went viral over social media and gained a lot of frenzy from the public.
Although the stocks did not last long in an upward trend, this company gained a lot of attention over the week. And if you thought you missed your shot by investing in GameSpot shares. Well, here is a new share where you can set your sights.
There is Still Bitcoin…
Bitcoin shares can be seen as a spin-off to the GameSpot saga. It has been a volatile market for most of the companies during the last few months, and bitcoin is no exception to that. It was reported on Friday that the shares shot up by 20% after Elon Musk, the founder of Tesla, added “bitcoin” to his bio. And this might just be the beginning.
After the drama which unfolded over the weekend, bitcoin enthusiasts and small investors are targeting the shares of bitcoin, thinking the share prices will likely rise. In contrast, the hedge funds are shorting the shares, and the prices will fall lower.
The shorting of bitcoin share has been prevailing since October of last year. After the company’s rally in 2020, where the shares had been almost tripled, the bitcoin share price went to an all-time high last month, although it has been reported to face some market swings.
People are taking to Twitter and other social media platforms, looking at ways to increase the share price of bitcoin. Nasdaq is keeping an eye out for unusual stock activity taking place in the market, and if anything looks out of the norm, they are planning to shut the stocks. This manipulative move was seen last week after the GameSpot mania unfolded, where investors were not about to access certain stocks as they were made unavailable to them.
The company finds itself intact in an upward trend at the end of January, although there were slight downfalls along the way, it maintained its position. The big sharks primarily influence the share market. Hedge funds have covered their long positions by increasingly betting against the bitcoin prices, while the retail traders empowered by trading apps like Robinhood are swaying the market prices higher than what the institutional investors would prefer.
There has been no report if the hedge funds are planning to short against bitcoin’s shares. Although, data from CFTC’s latest information on Traders in Financial Futures states that bitcoin now has one of the largest net shorting positions.
There has been a large influx of day traders who are influencing the stock prices to rise, especially with the spread of coronavirus and many countries facing lockdowns. The investors have been increased to a significant number, and now bitcoin is facing supply issues, and this is not likely to slow down any time soon.
This is an underlying frustration and anger from the retail traders towards the institutional investors and how they are influencing the share market, taking long positions, and gaining profits while also planning to shut down anything which comes their way.
With all being said, bitcoin is in a league of its own, having a market cap of over $560 billion market share. Bitcoin has seen tremendous growth over the decade; it is unlikely the retail investors will bid farewell to this stock, irrespective of the hiccups in the stock price.
The investors’ attitudes are being broadly influenced by some of the high profile companies, which will provide high gains made towards the investment. Only time will tell which side will the stock market swing towards, and we will be witnessing another fallout of the growing tiff between the institutional traders and retail investors.
