GameStop’s Bitcoin buying announcement has affected its stock price significantly. First, with a 16% surge to a 26% crash, the holders witnessed high volatility within just a few days. However, analysts’ mixed sentiments on this GME news hint at higher uncertainty, especially as the bears double down and hint at the possibility of either a further crash or a short squeeze. In 2021, such a squeeze resulted in the GME stock price creating its ATH.
GameStop Stock Price Tumbles & Short Volume Doubles
The Bitcoin treasury announcement resulted in a significant uptrend for the token, which rose to a high of $29.39. However, GameStop’s plan to raise $1.3 billion to buy Bitcoin affected investors’ sentiments significantly. Today, GME trades at $21.73, with a 26% drop from the high, indicating the investors’ concerning sentiments.
The short trader’s volume had increased significantly in anticipation of a further drop. In the last 24 hours, the count has increased by a staggering 234%, reaching 30,884,606. Due to such a high count, the NYSE has put a trading restriction on the GME stock, affecting its price.
GameStop Stock Price to Hit New ATH?
The high count of the short volume clearly indicates that the traders are betting on the GameStop stock price drop. Although it is correct per the current scenario, investors believe this gaming firm’s stock will follow the MSTR’s price rally.
Trend changes and the GME stock price surge will result in the liquidation of these shorts. As a result, the short sellers will jump into re-buying GME to restore their losses. In an optimistic scenario, this would result in generating a short squeeze, i.e., the stock’s price would rise sharply.
This happened in 2021; the short volume was high, and the chain reaction resulted in the price jumping to an all-time high of $82.25. If history repeats itself and a high buying pressure builds, a short squeeze could form, resulting in the GameStop stock’s price rally to new ATH.
GameStop’s Short volume on the monthly chart is higher than during the 2021 short squeeze. This is insane, adds analyst.
Experts Predict GME Price to Hit $1000
Experts like Peter Schiff and others are criticizing GameStop’s Bitcoin buying choices. One added that GameStop’s announcement is just a distraction from their decaying finances.
Investors are fleeing as fast as they can. They know the BTC announcement is all just a failed weak attempt at a distraction from their decaying financials.
Others think contrary, anticipating a comeback similar to the Metaplanet and MicroStrategy’s stock price rally. Interestingly, Metaplanet became Japan’s hottest stock due to Bitcoin buying, as its price surged 3.575% within a year.
The same is true for Michael Saylor’s MSTR. As a result, under the pretext of short-squeeze, investors anticipated GME stock price to hit $1000 or higher.
However, the most realistic scenario is based on the Bitcoin price rally, where analysts predict a lower yet bullish outlook. They believe that if the BTC reached $150,000, the GameStop stock price would mirror it, pushing it to $40 or higher.
As this digital asset is the key metric here, investors must monitor Bitcoin’s performance, GameStop BTC buying, and similar updates.
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