Shares of video game retailer GameStop Corp. GME have lifted exponentially this week, trumping the world’s largest cryptocurrency Bitcoin's BTC/USD yearly gains in a single day.
What Happened: GameStop shares rallied 190% since the week began, according to data from Benzinga Pro, pumped by retail traders' excitement over the return of Keith Gill, aka "Roaring Kitty", a central character in the previous rally of shares in January 2021. Bitcoin, on the other hand, has risen 125% over the past year, paling in comparison to the GameStop whirlwind.
That said, on a larger timeframe, the King Crypto's trajectory evoked more optimism. Since the last meme stock mania in Jan. 2021, Bitcoin has gained 91%, even breaching its previous peak earlier this year.
GameStop, on the other hand, entered a multi-year decline and was unable to break through its prior highs. It was still trading 38% lower than its peak.
Why It Matters: GameStop’s trajectory displayed brief, sharp surges brought on by social media events, but Bitcoin exhibited consistency over the years, bolstering its use case as a store of value asset.
While the sustainability of GameStop's surge will be evident in the next few days, Bitcoin's growing mainstream penetration spurred by the launch of spot ETFs would mean a more stable ascent, away from wild fluctuations.
Price Action: At the time of writing, Bitcoin was exchanging hands at $61,908.40, following a 1.14% drop in the last 24 hours, according to data from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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