The divergence between BTC and stocks was partly due to a massive short squeeze of institutional investors with a Reddit group called r/WallStreetBets. The Reddit purchasing frenzy has been based about GameStop, the video game and consumer electronics retailer.
Elon Musk, the planet’s richest man, additionally added the Bitcoin emblem to his Twitter webpage, possibly indicating his newfound support of the electronic currency.
Paolo Ardoino believes the GameStop saga is merely the beginning of a mass revolt against the financial status quo which Bitcoin stands to benefit significantly from this narrative.
“Bitcoin is ascendant again as the GameStop issue takes center stage,” Ardoino tells Cointelegraph. “As advocates for retail traders railing against the present arrangement and practices of financial markets, it is crucial to remember that a lot of the job being done in the blockchain space was inspired with these obstacles”
He proceeds:
“Removing obstacles to normal, everyday working people which are seeking and building wealth growing opportunities has always been a part of their ethos of crypto.”
The retail crowd was dealt a significant blow last week after Robinhood — a trading platform which allegedly empowers the little man — suspended trading of GME and other stocks over fears of extreme volatility. A class-action suit was registered against Robinhood shortly afterwards.
Ardoino isn’t the only one who believes Bitcoin will benefit in the GME short squeeze. Anthony Scaramucci, the creator of billion-dollar hedge fund SkyBridge Capital, believes GME is”more proof of concept which Bitcoin is going to work.”
Meanwhile, the Galaxy Digital’s Mike Novogratz called the GME melt-up a”giant endorsement of DeFi,” or decentralized finance, which reflects one of the biggest usage cases for blockchain technology.
