With the return of Keith Gill, who is famous by the name “Roaring Kitty,” traders are observing the GameStop coin closely for the next bull run. Most of the analysis hopes for a spike in price; however, one of them is not sure about it.
Investors are raising a question about the sudden return of Kaith Gill to the GameStop coin. This is the person behind the 2021 GameStop short squeeze and traders asking if GameStop 2.0 is on the horizon.
In the phase of COVID 19, Gill was at the center of the GameStop saga. Reddit traders reversed the fortunes of hedge funds by challenging their short positions on what they perceived to be a failing brick-and-mortar game store. This resulted in GameStop stock skyrocketing over 1,000% in less than a month.
Some analysts believe that kicking out the short sellers is the best way to spike the price of this token. Memecoins like Shiba Inu and Doge made a price surge after the short sellers shifted their attention to other coins.
After June 19, Gill vanished from the social media platforms and returned after almost 3 years on May 13. To announce his return, Gill posted a cryptic meme depicting a gamer sitting up in their chair, as is customary.
After the 24-hour return post of Gill on X, GameStop’s price surged to 111%, followed by Doge and SHIB, which rose by 6.2% and 5.4% at the same time.
Source: TradingView
Analyst Expresses Caution on GameStop Coin
eToro market analyst Josh Gilbert said that this time it is not easy to repeat the history of 2021.
“I think it will certainly ignite some short-term moves from these assets, but it’s hard to see any longevity,” he said.
Gilbert also pointed out that the outstanding shorts on assets like GameStop were significantly smaller compared to 2021. This suggests that the potential to turn the table is low, however, the price surge would likely be smaller this time.
“The environment is just not comparable to 2021, when interest rates were at rock bottom, governments were providing fiscal stimulus globally, and major economies had little to no inflation.”
“We have 5.5% interest rates in the United States and there is a global cost of living crisis going on. Simply, consumers are unlikely to be in the same position as they were in 2021 and that has a huge impact on financial decisions,” Gilbert added.
Crypto promoters provided a simpler explanation for their optimism.
Travis, a pseudonymous trader, spotlighted a recent agreement between Robinhood and decentralized exchange Uniswap. He suggested that it’s logical to anticipate a fresh influx of GameStop lovers purchasing meme-coins and other cryptocurrencies through the app.
“Just a reminder, you can trade memes on Robinhood now. You think the Roaring Kitty army isn’t going to buy these things?”
However, Gilbert says that there are many other factors, and most investors are now aware of how risky rallies typically result. Therefore, investors are taking precautionary measures before investing in crypto.
Source: Yahoo.com
“I think we’re in a completely different position from where we were in 2021, which makes me think a similar rally would be unlikely,” he said.
“That said, the 14.5 million users on WallStreetBets have shown in the last few years that anything is possible.”
The GameStop coin, along with several other memecoins, have no affiliation with the company. As per Birdeye data, this coin dramatically shows an upward trend by going high to 3650% in a single day.
Source: Birdeye
