Keith Gill, also known as Roaring Kitty, has made a surprising return after three years, causing a frenzy of demand for GameStop (GME) and leading to an unexpected increase in its price.
Despite this, eToro’s market analyst does not believe that GME’s long-term price will be significantly affected, stating that the current global cost of living crisis is different from the situation in 2021.
The memory of GameStop’s extraordinary surge in 2021 is still fresh in the minds of investors. In just under a month, the stock experienced an astonishing 1,000% increase after individual investors on online message boards began buying shares in a video game retailer. This came after GME shares had previously declined by one-third over a five-year period, with investors betting that the stock would continue to fall. Keith Gill, a former financial broker and analyst known as Roaring Kitty on social media, was identified as one of the drivers behind the bullish reversal, which brought him fame in 2020 and 2021. However, in February 2021, Gill was called to testify before the House Financial Services Committee as part of an investigation into potential market manipulation.
Now, three years later, Gill has made a sudden and unexpected reappearance for the first time since June 2021, sparking excitement among retail investors who celebrate his return with comments like “he’s back” and “just in time for the memecoin supercycle.” Unsurprisingly, GME shares surged by 74.5% on Monday.
According to Birdeye data, GameStop experienced a staggering 3,650% spike in a single day, causing a ripple effect in the crypto market, with Dogecoin and Shiba Inu rising by 6.2% and 5.4% respectively during the same period. AMC Entertainment, a theater chain, also saw a 78% rally on Monday, although its shares are still not far above their record low of $2.38 in April.
However, eToro market analyst Josh Gilbert does not anticipate a significant rally for GME this time around. He does acknowledge that there might be a short-term surge, but he believes that the current global cost of living crisis makes it unlikely for consumers to be in the same position as they were in 2021. Gilbert points out that the incredible short positions on assets like GameStop are smaller compared to 2021, indicating that any upward movement in the stock will also be smaller. He emphasizes that the environment today is different from 2021, with higher interest rates and a global cost of living crisis, which significantly impact financial decisions.
Despite Gilbert’s conservative analysis, pseudonymous trader Travis notes that a new wave of GameStop enthusiasts is now buying meme coins and other cryptocurrencies through Robinhood, thanks to the recent collaboration between Uniswap and the decentralized exchange, as reported by Crypto News Flash.
For more information about Dogecoin, including a buying guide, wallet tutorial, and price updates, check out the recommended links below.