The growing number of retail traders sidestepping Wall Street to power rallies in stocks like GameStop Inc. points to a positive backdrop for Bitcoin, Anthony Scaramucci.
January 28, 2021 | AtoZ Markets – GameStop (GME) shares rose 700% this year. It has seen an increase of 275% in the last week. Spurred by retail traders, the triple-digit rally in GameStop shares indicates a positive backdrop for Bitcoin.
This opinion was expressed by the head of SkyBridge Capital Anthony Scaramucci, Bloomberg reports. According to him, this phenomenon demonstrates the key idea of Bitcoin financial decentralization.
What’s happening on Wall Street?
According to Bloomberg, GameStop has sudden rally was triggered by Reddit-fueled r/wallstreetbets day traders, proving that individuals have more power to influence markets than big institutions.
A significant number of small players, following calls on social media, ramped up their purchases of GME, which led to the elimination of shorts. This amplified the effect of the rise in GameStop’s share price. Since the beginning of the year, securities have risen from $18.84 to $342.4 at the time of writing – more than 18 times.
Emphasis on decentralization
“The activity at GameStop is more than a proof of concept that Bitcoin is going to work. And how to defeat this crowd? For me, this is another confirmation of the power of decentralized finance,” said Scaramucci.
He noted that smartphones and low-cost trading platforms have “democratized” a previously isolated and highly concentrated wealth management business.
“This is the era of the micro-investor, and you better take it seriously, otherwise you will only be hired as a cleaner,” he added.
Scaramucci’s company Skybridge is one of such corporate investors in Bitcoin. Recall that in December SkyBridge Capital invested $25 million in bitcoin; by the end of the year, investments in the premier cryptocurrency reached $182 million. In January, the company launched a $310 million bitcoin fund.
Think we missed something? Let us know in the comment section below.