Following GameStop's announcement of Bitcoin acquisition, its stock experienced sharp fluctuations, with the market reacting to both a rapid rise and subsequent decline.
Stock Soared, Then Dipped Sharply
GameStop's stock rose nearly 16% after the Bitcoin acquisition news, but soon suffered a 26% decline. This shift surprised short-term traders, many of whom attribute it to increasing short positions. Temporary trading restrictions imposed by the NYSE also influenced investor behavior. The company's plan to raise $1.3 billion in new capital received mixed reviews.
Short Positions Echo 2021 Levels
The volume of short positions on GameStop stock surged by 234% in the past 24 hours, exceeding $30 million, a level even higher than 2021. While investors explore new opportunities, analysts note a more cautious market movement.
Bitcoin Announcement Triggers Debate
Economists view the Bitcoin purchase as a strategic move, not just an investment decision. Some analysts believe this news might lead to a rapid unwinding of short positions, potentially triggering price increases. Investors speculate that if Bitcoin's rise continues, GameStop's stock may recover.
The situation with GameStop's stock remains dynamic, closely monitored by both the cryptocurrency market and macroeconomic indicators.
