Bitcoin has once again defended the $30k support again. The cryptocurrency is still trading sideways and is under some significant pressure from the bears, but some like Scaramucci believe that recent development will benefit the sector overall, especially with the GameStop boom.
Gamestop is a video game distribution company that underwent a massive boom in 2020-21 in the stock market after an initial poor run due to the Coronavirus pandemic. The conventional stock market analysts declared that the stock was barely going to stay afloat in the initial market bloodbath and made big bets against it. The idea that a small retailer that was closing 400 stores could compete with big juggernauts like Amazon was considered ridiculous and that resulted in big statements against it. It seemed clear that that the company wouldn’t survive in the short-term. Its price was only $3.25 each at one point and things were quite negative overall.
However, its stock price was saved by a hoard of smaller investors who liked its progress and wanted to prove that not everything is under the control of the big guns. This began the what is widely known as the GameStop Boom. As a result of massive investments and interest from smaller investors, the stock price of the video game retailer is now close to $342. It is an increase of more than 100 times from its lower side. The move was also supported by eccentric Tesla CEO Elon Musk as well in a tweet shown here:
Gamestonk!! https://t.co/RZtkDzAewJ
— Elon Musk (@elonmusk) January 26, 2021
With the incoming stock market boom, many of these smaller stocks of non-blue chip companies are showing resilience as smaller investors are fighting back against bigger institutionalized investors. According to former Trump aide and investment banker Anthony Scaramucci, this is a good sign overall for the Bitcoin sector. Scaramucci or “The Mooch” as he is nicknamed, is looking to get into the crypto sector on his own with his firm SkyBridge Capital.
According to The Mooch:
How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance.”
It is to be noted that trading volume of GameStop has surpassed that of Bitcoin’s. It stands currently at around $25 billion compared to Bitcoin’s $13 billion. However, the explosive growth of stock may end one day or another but even though it may come crashing down, it shows us that no one can match the power and will of decentralized investments or “decentralized crowd” as The Mooch points out. Ultimately people are too many and their money if added up is a lot more than of any financial institution’s.
Image source: Ruperto Miller Under CC
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