Why Bitcoin [BTC] Could be Next GameStop [GME]?
Bitcoin (BTC) could emulate the success of GameStop stocks as recent data reveals that the top cryptocurrency is heavily shorted by hedge funds just like GME. One Hedge Fund called Fred Capital has $7 trillion in short positions against the top cryptocurrency.
Just found out this hedge fund, FRED Capital has a $7 trillion #Bitcoin short position. ???? pic.twitter.com/GZ1jcgf8mA
— Documenting Bitcoin (@DocumentingBTC) January 29, 2021
GME stocks skyrocketed after a Redditor found Melvin Group Hedge Fund has bought billions in short positions against the gaming chain. He created a group asking followed to short squeeze the GME stocks by buying as much as everyone can.
This skyrocketed GME stock prices above $450 liquidating billions in the Short position.
The crypto community-backed the fight against wall street as they also share a similar sentiment towards the centralized banking system. Bitcoin in itself is projected as a financial revolution challenging the established and flawed financial infrastructure. The revelation that hedge funds have heavily bought short positions running into trillions could propel already bullish digital assets to new highs.
New CME data also reveals that hedge funds are twice more short short in Bitcoin futures and Bitcoin worth $1.237 Billion is on short orders.
Data from the CME reveals that hedge funds are twice more short than long on #Bitcoin futures, shorting 39,955 BTC worth $1.37 billion.
WSB, do with this information what you will. pic.twitter.com/L412chcoQs
— Bloqport (@Bloqport) January 30, 2021
Can ‘Short the bankers’ Sentiment Drive Bitcoin Price
A bunch of Redditors along with the retail market rocked the entire wall street after they decided to beat the big check investors in their own game. The sentiment could well transition into an already bullish cryptocurrency world, as short the banker sentiment seems to have grown in the wake of the GME price boom.
Elon Musk whose tweet helped GME stocks to gain nearly $4 billion in market cap lashed out against hedge funds and short investors after many big wigs claimed the GME price rise was manipulation.
u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons— Elon Musk (@elonmusk) January 28, 2021
Musk the very next day changed his bio to Bitcoin showing his support for the top cryptocurrency and what many claimed an entry of Tesla and Elon Musk into Bitcoin. The price of BTC shot up by nearly 20% post Musk’s Twitter bio update.
In retrospect, it was inevitable
— Elon Musk (@elonmusk) January 29, 2021
Many claimed that the price rise was because of Musk while others believe it was because of the exploring Bitcoin options worth billions.
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