WILL GAMESTOP SPARK ANOTHER MEMECOIN BULL RUN?

With the return of Keith Gill, also known as “Roaring Kitty,” traders are speculating about the next big stock or crypto rally. However, analysts remain skeptical.

Gill was pivotal during the GameStop saga of the COVID-19 pandemic, where Reddit traders countered hedge funds shorting GameStop, causing its stock price to surge over 1,000% in less than a month. This event is also believed to have set the stage for the rise in memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB).

After going silent on social media on June 19, 2021, Gill reemerged on May 13 with a cryptic meme, signaling his return. Following this, GameStop shares rose by up to 111%, while DOGE and SHIB gained 6.2% and 5.4%, respectively.

Crypto enthusiasts are hopeful that Gill’s return will spark another retail trading frenzy. However, eToro market analyst Josh Gilbert expressed doubts, stating that while short-term movements might occur, sustained rallies are unlikely due to current economic conditions. He noted that the environment now is vastly different from 2021, with higher interest rates and a global cost of living crisis, making consumers more cautious with their financial decisions.

Some crypto traders, like the pseudonymous Travis, believe the recent integration between Robinhood and decentralized exchange Uniswap could lead to a new wave of meme coin purchases via the app.

Despite the optimism, Gilbert pointed out that most investors are now more aware of the speculative nature of such rallies and are likely to proceed with caution. He emphasized that the current market conditions are not comparable to those of 2021, making a similar rally less likely.

In the past, GameStop-related memecoins, such as GME (which is not officially affiliated with the company), saw massive spikes, with the GME memecoin soaring over 3,650% in one day according to Birdeye data.

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