Snapshot
GameStop shares have outperformed Bitcoin’s yearly returns in a single day, sparking speculation about potential spillover effects on the altcoin market, reminiscent of the previous bull cycle.
Why It Matters
The resurgence of the GameStop saga has reignited hope for an altcoin rally, as historical patterns suggest a connection between GameStop’s price surge and the subsequent altcoin bull cycle in 2021. This development is of particular interest to crypto investors and enthusiasts looking for potential catalysts for the next “altseason.”
By the Numbers
- GameStop shares are up over 154% on the yearly chart, surpassing Bitcoin’s 129% yearly returns.
- GameStop’s price rose over 105% on May 14, 2023, within a single day.
- Following Keith Gill’s return to social media, Dogecoin (DOGE) and Shiba Inu token (SHIB) gained 6.2% and 5.4%, respectively, in 24 hours.
What’s Next
Crypto analysts are closely monitoring the current market capitalization of altcoins, which appears to be positioned similarly to the 2021 setup that triggered the altcoin bull cycle. Some experts predict that altcoins may find their local bottom around early June before the start of the next “altseason.”
The Big Picture
While the investing environment today differs from 2021, with smaller outstanding shorts on GameStop and less favorable economic conditions, the GameStop rally has still managed to breathe new life into the crypto market. As memecoins like Pepe (PEPE) hit new all-time highs, investors are cautiously optimistic about the potential spillover effects on the broader altcoin market.
What do you think about the potential impact of GameStop’s rally on the altcoin market? Do you believe we’re on the verge of another “altseason”? Leave your thoughts in the comments below.
