Metaplanet, listed on the Tokyo Stock Exchange under the ticker 3350, announced on July 1 that it has made an additional bitcoin purchase. Following the company’s disclosure on June 24 about plans to acquire BTC worth 1 billion yen (.2 million), Metaplanet has initiated the purchase with an investment of 200 million yen. This transaction […]
Bitcoin News
Blackrock’s Bitcoin ETF Starts Trading in Chilean Stock Exchange
Last week, the Ishares Bitcoin Trust (IBIT) arrived at the Santiago Stock Exchange, the main financial market of Chile. The leading spot bitcoin exchange-traded fund (ETF) instrument, which was approved this year by the U.S. Securities and Exchange Commission (SEC) will now allow Chilean investors to acquire an “accessible and efficient digital asset to include […]
Bitcoin News
Brazilian Stock Exchange B3 Mulls Offering Ether Futures
B3, the Brazilian stock exchange, is considering extending its native cryptocurrency trading options to offer ether futures contracts to its customers. The exchange, which has been a pioneer in Latam offering crypto-related trading products, would be focusing on institutional investors who want to diversify their traditional or crypto portfolios with more options. Brazilian Stock Exchange […]
Bitcoin News
Metaplanet Directors Approve BTC Acquisition Plan; Company’s Stock up by Nearly 500% YTD
The directors of Tokyo-based investment and consulting firm Metaplanet Inc. have approved the company’s proposal to purchase Bitcoin worth .25 million using bond proceeds. Metaplanet clarified that the acquired cryptocurrency will be recorded at its acquisition cost for long-term holdings. The company’s stock has surged by almost 500% since the beginning of the year. Valuation […]
Bitcoin News
Analyst Warns of US Banking Sector Troubles, Foresees Stock Market and Bitcoin Slide
While U.S. federal regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, have identified concerns with the crisis management tactics of four banks, in a recent interview with Kitco, market strategist Gareth Soloway expressed concerns. Soloway suggests something is “amiss” in the U.S. banking sector and claims that major banks are shedding […]
Bitcoin News
Market Jitters: Analysts Warn of Looming US Stock Crash, Draw Parallels to 1929
As the U.S. stock market scales new heights, a growing chorus of analysts warns that a severe crash could be on the horizon, reminiscent of the devastating 1929 collapse. Concerns center around the meteoric rise of Nvidia and the burgeoning artificial intelligence (AI) sector, feared to be the latest bubble in a pattern echoing past […]
Bitcoin News
Japanese Corporation Metaplanet Acquires More Bitcoin, Stock Price Soars
Metaplanet, a publicly traded corporation on the Tokyo Stock Exchange, has announced an investment of 23.351 bitcoins, with an average purchase price of 10,706,180 yen per BTC, totaling 250 million yen (.6 million). The company now holds 141.0727 bitcoins, with an average purchase price of 10,278,391 yen per BTC, amounting to a total aggregated purchase […]
Bitcoin News
New US Stock Exchange Launching in Texas Backed by Blackrock and Citadel
Backed by major financial institutions like Blackrock and Citadel Securities, TXSE Group Inc. has announced its plan to launch the Texas Stock Exchange (TXSE) in Dallas. This new exchange will provide a platform to trade and list public companies and exchange-traded products. With a capital raise of approximately 0 million, TXSE stated that it is […]
Bitcoin News
Bitcoin, Ethereum, Solana Over 150% Annual Gains Leave The Stock Market, Gold In The Dust
Despite the relative tepid movement in the crypto market since Bitcoin hit a new all-time high (ATH) in March, Bitcoin, Ethereum, and Solana have continued to top traditional assets, including Gold. This was highlighted in a recent report that showed how crypto assets have provided the best returns for a while now.
Bitcoin, Ethereum, And Solana Outperform Traditional Assets
Raoul Pal, Co-Founder of Exponential Age Asset Management (EXPAAM), shared the crypto investment firm’s latest monthly update, showing annualized returns on all major assets.
Bitcoin, Ethereum, and Solana have topped traditional assets with annualized returns of 141%, 152%, and 224%, respectively. For context, NDX, the best major traditional asset, boasts an annualized return of 17%.
Thanks to this, these crypto assets have been the best-performing assets in 11 of the last 14 years. These digital assets also look on course to outperform traditional assets again this year, as they boast higher year-to-date (YTD) gains. Data from CoinMarketCap shows that Bitcoin, Ethereum, and Solana currently have YTD gains of over 67%, 66% and 70%, respectively.
On the other hand, Gold, the best-performing non-crypto asset this year, has a YTD gain of 13%. The NDX boasts a YTD gain of 10%, while the SPY has recorded a YTD gain of 11%. Interestingly, while the volatility of crypto assets has been criticized at times, this has largely contributed to why they have continued outperforming traditional assets.
The Director of Global Macro at Fidelity Investments, Jurrien Timmer, previously highlighted how Bitcoin has continued to record the best risk-reward since 2020. He also alluded to Bitcoin’s high volatility, stating that Bitcoin’s huge drawdowns have also come with large gains. The same can also said about crypto tokens, especially considering that a token like Solana, which dropped to as low as in late 2022, is now trading above 0.
More Gains Ahead For BTC, ETH, SOL
Bitcoin, Ethereum, and Solana are expected to record more YTD gains as the year progresses, given that the crypto market is currently in a bull run. Recent developments in the crypto market also paint a bullish outlook for these crypto tokens. One is the increased demand for the Spot Bitcoin ETFs. Data from Farside Investors showed that these funds recorded net inflows of 6.6 million on June 4, their best day since March.
Meanwhile, the Spot Ethereum ETFs are expected to begin trading by July. Crypto analysts like Michael van de Poppe predict these funds could spark a significant rally for Ethereum and other altcoins. ‘Solana Summer’ also looks to be on the horizon, with the crypto token showing signs of imminent parabolic upward trend.
At the time of writing, Bitcoin has broken above the ,000 resistance level and is trading at around ,000, up almost 3% in the last 24 hours, according to data from CoinMarketCap.
Is This The Next Meme Stock Frenzy? ROAR Explodes Over 300% After Kitty’s GME Move
The echoes of 2021’s meme stock saga reverberated through financial markets this morning, as the obscure ROAR meme coin and video game retailer GameStop experienced a meteoric rise fueled by social media nostalgia. The catalyst? The return of a familiar face – Keith Gill, better known by his online moniker “Roaring Kitty.”
Kitty Claws Back In
Retail investors were sent scrambling after Gill, a superstar among the online investment community on Reddit’s WallStreetBets forum, posted a cryptic message hinting at a significant stake in GameStop.
The post, featuring an image of the “Uno Reverse” card, sent speculation into overdrive. Shortly after, Gill confirmed his bullish stance by revealing a massive holding of 5 million GameStop shares, valued at roughly 6 million based on Friday’s closing price.
In the 20 minutes that followed Gill’s post, GameStop’s stock price on Robinhood’s overnight markets shot up by 20% to .50. This increase followed the stock’s Friday closing price of .14. This year, the shares have increased by almost 40%, presumably as a result of Gill’s sudden comeback.
This disclosure sent shockwaves through the market. GameStop’s stock, infamous for its volatility during the meme stock frenzy of 2021, surged over 100% at its peak in pre-market trading on Monday.
NOW: GameStop soars after the Reddit account that drove the meme-stock mania of 2021 posted what appeared to be a 6 million bet https://t.co/0mnyJF4lIf pic.twitter.com/rpRdA2AIWL
— Bloomberg Markets (@markets) June 3, 2024
While the price eventually settled to an impressive 88% increase, the roar from retail investors was undeniable. The ROAR meme coin, seemingly named in homage to Gill’s online persona, mirrored the GameStop price surge of over 300%, reaching a high of .001643.
A Meme Stock Revival?
The sudden rise of both ROAR and GameStop has reignited the debate surrounding meme stocks. These assets, often characterized by high volatility and driven more by online hype than traditional financial metrics, captured the imagination of retail investors in 2021. Gill, who played a pivotal role in the initial GameStop saga, appears to be a key player in this potential revival.
However, analysts remain cautious. GameStop itself is in a precarious position, having recently sold a massive chunk of shares to bolster its finances while facing continued net losses and projected sales declines. The company’s long-term prospects remain uncertain, raising questions about whether this is a genuine resurgence or simply a nostalgic echo of 2021.
Weighing Hype Against Reality
The recent surge in ROAR and GameStop presents a classic risk-reward scenario for investors. Early participants who bought in at lower prices stand to reap significant profits. However, the inherent volatility of meme stocks poses a significant danger of substantial losses.
Featured image from HubPages, chart from TradingView