• GameStop shares surpassed Bitcoin’s yearly returns within a day, rising over 105% on May 14th
• The return of the GameStop saga has ignited hopes that profits could flow into altcoins, potentially catalyzing the 2024 altcoin season, similar to the 2021 cycle
• Some memecoins like Pepe and Dogecoin have already seen gains following the GameStop rally, but the investing environment is different compared to 2021
GameStop‘s stock has seen astronomical gains that beat Bitcoin‘s yearly returns within a single day. With profits flowing out of meme stocks, history suggests some of that money may spill over to altcoins and ignite a new bull run.
GameStop Stock Rises Over 100% in Two Days
GameStop’s share price is up over 154% this year, compared to Bitcoin’s 129% gains. The bulk of the gains happened in the last two days, with the stock rising over 105% on May 14.
The price started surging after Keith Gill, known for kickstarting the 2021 GameStop short squeeze, returned to social media after nearly three years. In the 24 hours after his posts, GameStop rallied 111%, while Dogecoin gained 62% and Shiba Inu 54%.
Connection to Last Altcoin Season
The return of the GameStop hype has renewed hopes for altcoins. During the 2021 crypto market cycle, the altcoin rally started right after the GameStop frenzy peaked.
Chart patterns also show that the 2021 altcoin rally began immediately following GameStop’s rally. As the saying goes, “money flows” from one sector to another.
Current Conditions Mirror Previous Altcoin Bottom
The total altcoin market capitalization today looks similar to the 2021 bottom that preceded the massive altcoin bull run. If history repeats, altcoins could bottom in early June before starting their next cycle.
Some Memecoins See Early Gains
While most altcoins haven’t reacted yet, select memecoins are already benefiting from the GameStop resurgence. Pepe hit a new all-time high above $0.00001 on May 13, a day after Gill returned online.
However, the investing landscape today is far different from 2021’s easy money policies. With less leverage in the system, any gains are unlikely to reach the same exaggerated levels.
Conclusion
GameStop’s epic short squeeze last year likely sowed the seeds for the monumental altcoin bull run that followed. With round two of the meme stock mania now underway, history suggests some of those profits may flow into altcoins and ignite the next hype cycle. However, more measured monetary policies worldwide mean any gains will probably be more muted than 2021’s parabolic ascents.
