Shares of GameStop (GME) have surpassed Bitcoin’s (BTC) yearly returns in just one day, leading to speculation that some of the profits could flow into the altcoin market, similar to what happened during the previous bull cycle.
According to TradingView, GameStop’s returns on the yearly chart are up over 154%, compared to Bitcoin’s returns of over 129%.
Most of GameStop’s gains came in the past two days, with the stock price rising over 105% on May 14. This surge began on May 13 when Keith Gill, the man credited with starting the GameStop short squeeze earlier this year, unexpectedly returned to social media after a three-year break.
During the COVID-19 pandemic, Gill played a central role in the GameStop saga, where retail traders overpowered hedge funds that had shorted the stock. This frenzy resulted in GameStop’s stock price increasing by over 1,000% in a month.
Following Gill’s return, GameStop shares rallied as much as 111% in the 24 hours that followed. In the same time frame, Dogecoin (DOGE) and Shiba Inu (SHIB) gained 6.2% and 5.4% respectively.
The resurgence of the GameStop saga has sparked hope in altcoins, as the previous bull cycle saw an altcoin rally triggered shortly after the GameStop short squeeze. Historical chart patterns support this idea, as the altcoin season in 2021 was catalyzed by the GameStop rally.
Crypto analyst CryptoAmsterdam noted that the current market capitalization of altcoins is in a similar formation to what was seen in 2021, suggesting that another altcoin bull cycle may be on the horizon.
Rekt Capital, another analyst, expects altcoins to reach their local bottom in early June before the start of the altcoin season, aligning with the potential rally.
While most altcoins have not yet reacted to the GameStop rally, some memecoins, such as Pepe (PEPE), have already gained momentum, reaching new all-time highs.
However, the investing environment on May 14 is different from 2021, as the outstanding shorts on GameStop are much smaller. This could limit the size of the upward move, according to eToro market analyst Josh Gilbert.
It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.