For a brief period, Bitcoin exceeded US$70,000 (RM328,598), as speculation over memecoins was fueled by the current GameStop frenzy and inflows into crypto investment products for the fourth week in a row.
CoinShares International Ltd. reports that in the week ending May 31, inflows into cryptocurrency assets totaled US$185 million. $2 billion was invested by investors in digital asset investment products in May, including exchange-traded funds (ETFs) for Bitcoin. For the first time in a week, Bitcoin temporarily exceeded US$70,000 on Monday; following its initial surge, the majority of other cryptocurrencies saw mixed results.
Traders speculated that the early increases were probably a result of GameStop share gains caused by the meme-stock mania of 2021, which was fueled by a Reddit account.
According to tracker CoinGecko, a cryptocurrency on the Solana blockchain that uses GameStop’s name, logo, and ticker increased by more than 120% on 3rd June, 2024, that is, Monday. However, the coin has no official connection to the corporation.
The action comes after GameStop Corp. shares surged when Keith Gill, also known as Roaring Kitty on X, disclosed his substantial holding in GME shares in a Reddit screenshot that was released on Sunday.
Not much changed for Dogwifhat, one of the most well-liked memecoins of the year.
“The gigantic GME derivative position announced by Roaring Kitty Sunday night served to catalyse rally in the crypto space, with a meaningful rise in Doge and BTC beginning moments after his Reddit post began to circulate widely,” said,
– Spencer Hallarn
According to Shiliang Tang, president of main trading firm Arbelos Markets, fresh money inflows at the start of each month also drove the market.
However, despite the cryptocurrency outperforming the GME ticker, Tang claimed that the weekend’s GME news was still the primary driver of the market’s advances.
Coinshares’ research also stated that Ethereum experienced a second week of inflows after the enthusiasm surrounding the US approval of ETFs that invest directly in ether.
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