[GAM] “Bitcoin will become the 2nd game stop for’Furious on Wall Street…’

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[서울=뉴스핌] Reporter Lee Hong-gyu = There is a prospect that the price of bitcoin, a cryptocurrency that has recently stagnated, may soar like the stock price of Gamestop (New York Stock Exchange: GME). It is an analysis that the sentiment of individual investors who have taken collective action as a common denominator against Wall Street can also be expressed in Bitcoin.

On the 1st (local time), the US economic media CNBC News said that the fight between individual investors and hedge funds over short selling could signal the direction of the world’s largest cryptocurrency Bitcoin.

Bitcoin [사진= 로이터 뉴스핌]

The media first mentioned that there are similarities between Bitcoin and GameStop in that they are the target of selling hedge funds. According to data from cryptocurrency news and analysis company The Block, the size of the hedge fund’s short bitcoin position exceeds $1 billion.

Short positions began to accumulate in October last year, when Bitcoin’s recent rally began in earnest. Despite the hedge fund’s movement, individual investors were found to have bought bitcoins so far.

Bitcoin price rose about four times last year, and then the reported price was renewed to about 42,000 dollars at the beginning of last month.

CNBC also pointed out that the recent restrictions on cryptocurrency trading by securities companies, including stock trading application Robin Hood, are similar to the recent GameStop incident.

The media said that unlike Gamestop, a video game retailer that closed its stores before the Corona 19 crisis, Bitcoin’s fundamentals are evaluated as promising.

Blockchain, the fundamental technology of Bitcoin, has the advantage that it is not tied to any government or currency. It is interpreted that this intrinsic value could fit into the interests of individual investors who are angry with Wall Street’s way of accumulating profits, causing an additional surge in demand.

CNBC said, “Investing in a cryptocurrency characterized by independence like Bitcoin means investing in technology and currency that can one day replace the modern financial system.” “It will never disappear among individual investors looking for the ultimate way to get them out.”

Apart from the sentiment of individual investors, the demand for bitcoin has recently increased among institutional investors. Previously, Blackrock, the world’s largest asset manager, incorporated Bitcoin futures for the first time in its fund portfolio.

Bitcoin, like other cryptocurrencies, has a limited supply. The number of bitcoins is set at 21 million, and the total number of bitcoins mined at present is about 18.6 million, which is close to the limit. While supply is fixed, demand is continuing to increase, suggesting that the price of bitcoin may skyrocket.

“The supply curve will virtually drop to zero over time,” said Michael Bushella General Partner of Blocktower Capital, a cryptocurrency and blockchain investment firm. “But demand is growing exponentially.”

Investment bank JPMorgan predicted that the price of bitcoin could soar as high as $146,000, and Citigroup’s foreign exchange technical analysts argued that the Bitcoin chart is signaling a possible rise to $318,000 by December. . These prices are about 4.3 times and 9.4 times higher than the current price, respectively.

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