3min read
Published on: May 14, 2024
#Crypto 360
#Daily Brew
“[Gary] Gensler is very much against it, the Democrats are very much against it,” Trump said. “But I’m good with it.“
With the GameStop stock rebounding, the repercussions are felt through the cryptocurrency market, mainly in the meme coin niche. The phenomenon of political-natured meme coins has made a remarkable comeback, and the ones related to Donald Trump have shown a remarkable increase, with some even going up to 30%.
In the last 24 hours, Dogecoin, the biggest of meme coins, has risen by 8%, and its price has increased from around $0.13 cents to a little over $0.15, as seen on BitDelta’s chart.
The rise goes beyond the circle of meme coins.
Political-natured coins, or PolitiFi, went up by 20%, thanks to the former U. S. President Donald Trump. For example, the MAGA (TRUMP) token had a massive 31% surge, hitting $8.41.
This increase in Trump-themed tokens is in line with the Ethereum wallet that is supposedly connected to Donald Trump, which at present holds almost $5 million in MAGA (TRUMP) tokens and the total cryptocurrency holdings of around $7 million as analysed by the blockchain analytics company Arkham Intelligence. On the other hand, the President Joe Biden-themed “Jeo Boden” (BODEN) meme coin did not do well; it decreased by 21% to a new value of $0. 27.
The recent support of cryptocurrencies by Donald Trump at a meeting of his NFT holders at the Mar-a-Lago resort adds one more layer of complexity to the already complicated situation. Trump, who is at variance with many in his party, promised to cut the hostile attitude towards the crypto industry if re-elected. His comments have caused a lot of commotion in the crypto world, leading to thoughts about the effects of his returning to the presidency. The British bank Standard Chartered research team has purported that if Trump wins the November elections, it will positively impact Bitcoin and increase its future price predictions.
In yet another twist of the story, the rebirth of Keith Gill, TheRoaringKitty, a well-known trader, has also contributed to the recent market thrill.
Image: Keith Gill, also known as Roaring Kitty, on his podcast
Gill, who has supported GameStop since 2019 and whose influence increased during the COVID-19 pandemic, was one of the leading figures in the January 2021 GameStop short squeeze. This incident, mainly driven by small investors and social media platforms, made the GameStop stock go from $4 to over $120 in just one month.
In its heyday, the stock rose a few thousand percent from its all-time low of $0—64 in April 2020. Gill's first investment of $53,000 was now almost $50 million at the time of the frenzy, one of the most amazing rags-to-riches stories in modern trading. This tale depicted the impact of social media-based investing and retail trading against institutional hedge funds, specifically Melvin Capital, which lost billions during the short squeeze.
The impact of Gill’s actions is still felt today as his followers quickly understood his recent social media activity as a sign to resume trading. This was the reason for a boost in the meme stocks and meme coins, as GameStop's stock jumped by a record 100% at the market's opening but was soon stopped because of the high volatility. AMC Entertainment Holdings, like GameStop, experienced a 30% rise in the first trading hours. The rush of movements was not only about the securities. The smaller cat-themed meme coins also witnessed an increase of thousands per cent.
The story again proves that social media, public figures, and financial markets are connected. These factors are coming together to form a complex picture that shows the changing nature of investment and speculation, where traditional financial analysis and the vagaries of online communities create unforeseen market movements.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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