Reports are coming in this morning that trading app Robinhood has suspended trading for GameStop stock and others after GME's price surged in a Bitcoin-like parabolic rally.
Unless you've been living under a rock, you'll know that average Redditors proved their investing power going up against major Wall Street traders short-selling GameStop stock. Largely fueled by small-time investors pushing back against large hedge funds, the price of the stock has risen more than 1,400% from roughly $20 on Jan. 12 to $358 at time of publication.
The meteoric rise of a seemingly underappreciated financial asset like GameStop stock has led to many on social media comparing investing in the retail store to that of crypto, and the terminology and comparisons are coming along for the ride. Investors not typically associated with crypto have begun to use lingo unique to the space.
The upcoming Chinese New Year holidays on Feb. 12 could have an indirect impact on the Bitcoin price and drive sell-offs on the market, according to a recent analysis. Per a Jan. 28 report by cryptocurrency investment firm Stack Funds, the ongoing selling pressure on the Bitcoin price is likely to continue in the short term due to Asian miners increasingly offloading their funds amid the upcoming week-long holiday.
With more than 60% of global Bitcoin mining pools are located in China, Stack Funds head of research Lennard Neo suggested that a lot of selling pressure is coming from Chinese miners. The researcher stated that the Miner Position Index, or MPI, has seen a massive surge recently, indicating a subsequent pullback of Bitcoin price. As Cointelegraph reported, MPI surged to its highest levels since 2019 in mid-January 2021.
The largest Bitcoin (BTC) and cryptocurrency asset manager in the world, Grayscale, could be set to move into the decentralized finance space after documents for several new trusts were filed in the Delaware corporate registry.
New trust filings for Aave (AAVE), Polkadot (DOT) and Cosmos (ATOM) were filed on Wednesday. On the same day, Grayscale also registered trusts for Cardano (ADA), as well as the privacy coin Monero (XMR).
Grayscale has since stated that the filings are not indicative of a definitive product launch for the five coins mentioned, merely that the firm is laying the groundwork for possible future launches.
“Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market,” the company told industry media.