GameStop’s 2021 meme coin bull run, alongside Keith Gill’s return, once again etched itself in minds. Gill’s comeback increased investor excitement and sparked curiosity about whether the next big crypto rally was on the horizon. However, analysts are not entirely sure about this.
2021’s Major Movement Still in Minds
Gill played a significant role in the 2021 GameStop event. Reddit traders launched a campaign against hedge funds that were short selling the shares of GameStop, a game store they traditionally believed to be failing, causing significant market activity. Some believe this movement also significantly impacted the prices of meme coins like Dogecoin and Shiba Inu.
Gill’s unexpected return has given many people hope. However, some analysts are skeptical. The rapid rise in GameStop shares following Gill’s return caught the attention of many investors, but a similar increase was not observed in meme coins. Now, crypto enthusiasts hope that Gill’s return will trigger a similar frenzy of individual buying.
Market Different from the Past
According to eToro market analyst Josh Gilbert, the market is currently in a quite different environment. Gilbert believes that short-term movements can definitely affect assets, but he has doubts about long-term sustainability. Particularly, the smaller size of open positions and different general economic conditions compared to 2021 could limit potential rises.
In an environment with high interest rates, rising global inflation, and consumers in a different position, investors may tend to be more cautious compared to 2021. While some in the crypto market suggest that developments like Robinhood starting to offer meme coins and other cryptocurrencies could trigger a new rise, Gilbert thinks investors now better understand the outcomes of speculative rallies and are acting more cautiously, commenting:
“I think our current position is completely different from our situation in 2021. This makes a similar rally unlikely.”
Anything is Possible in the Crypto Space
Although expectations are shaped this way, the last few years with 14.5 million users on WallStreetBets have shown that anything is possible.
Several ‘meme coins’ related to GameStop, including a cryptocurrency named GameStop (GME) with no official connection to the company, rose significantly in the midst of the emerging narrative. The GME meme coin surged over 3,650% in a single day.
