Bittime - The world of stocks has been enlivened again by the return of the legendary figure, Keith Gill, better known as "Roaring Kitty". After disappearing for three years, Roaring Kitty's appearance online immediately resulted in a surge in the prices of meme stocks, especially GameStop and AMC.
Roaring Kitty's Return Rocks the Stock Market
On Sunday, Roaring Kitty posted an image on social media platform He then continued the post by sharing his old YouTube video containing support for the company GameStop which was faltering at that time.
Check Today's Crypto Market:
The appearance of Roaring Kitty has once again ignited the enthusiasm of retail investors who fought together in 2021 to save GameStop from the clutches of hedge funds. This triggered a significant jump in GameStop and AMC stock prices.
GameStop and AMC: A Brief Story from 2021
In 2021, GameStop, a video game retail company, is struggling to survive amidst the rapid shift of consumers from physical media (discs) to digital downloads. Big hedge funds on Wall Street are betting against GameStop by short selling, hoping that the company's stock price will continue to decline drastically.
Also read: Golden Opportunity, Ethereum Protocol Fellowship (EPF5) Reopens!
However, the presence of Roaring Kitty and other retail investors changed the direction of the company which was almost bankrupt. They fought back by buying up GameStop shares in large quantities, ignoring various financial metrics that investors generally use to assess the company's condition.
Also Read How To Buy Crypto:
This action triggered an event known as a "short squeeze." Short sellers who bet against GameStop were forced to buy back large amounts of the company's shares to cover their losses, which ballooned as GameStop's share price rose.
At the opening of trading Monday, GameStop's share price immediately more than doubled. At the end of the day, GameStop shares closed up 74%. This is the biggest intraday increase for GameStop since the meme stock phenomenon in early 2021. Other meme stocks, such as AMC, also rose.
High trading volatility even caused trading in GameStop shares to be temporarily suspended eight times before noon.
The Impact of the Appearance of Roaring Kitty
Roaring Kitty became the center of attention in 2021 after his posts on Reddit forum Wallstreetbets sparked a David vs. Goliath-style fight against the big hedge funds betting against GameStop. Retail investors, who are often called "small guys", managed to win the battle, at least temporarily. As a result, GameStop's share price shot up more than 1,000% in 2021, followed by other meme stocks.
Roaring Kitty's appearance on social media then triggered a more significant surge in these shares.
Changes in Market Dynamics
However, it is worth noting that the market dynamics regarding companies like GameStop have changed. When Roaring Kitty and other retail investors started buying up GameStop shares in 2021, more than 140% of the company's shares were short. This distorted figure occurs because some short sellers carry out illegal practices, namely naked short selling.
Currently, short selling in GameStop shares is no longer as high as in 2021. This makes the price spike triggered by the appearance of Roaring Kitty not as fantastic as in 2021.
Conclusion
The return of Roaring Kitty brings nostalgia for retail investors who have struggled together in 2021. Although the surge in meme stock prices is not as fantastic as in 2021, the appearance of Roaring Kitty shows that the retail investor community still has the power to shake up the stock market.
How to Buy Crypto from Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
Venom Partners with KuCoin Ventures, Here's the Goal!
FLOKI Technical Analysis: Breakout of Downward Pattern, Nearest Target in Resistance Zone
Bank of Montreal Leaks Important Information about Bitcoin ETF to SEC
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.