Can someone check on the people that told us to "have fun staying poor" by not participating in crypto markets?
I kid, I kid. Losing money sucks, and if you bought in early of 2020, you'd be up a good chunk still. Or if you were a crypto truther in high school, you'd be too coked out from your Beverly Hills mansion parties to care.
Cryptocurrency miners in Beijing have halted all or part of their operations after a crackdown on bitcoin mining and trading. A State Council committee led by Vice Premier Liu He announced the crackdown late on Friday as a way to fend off financial risks. It was the first time China's cabinet has targeted virtual currency mining. Basically, China is cracking down on all the fun and trying to curb speculative crypto trading through suspension on financial institutions.
Bitcoin got murdered after the latest Chinese regulatory move and is now down nearly 50% from its all-time high. Ether is not looking great either, down 60% from a record peak hit just 12 days ago.
It doesn't help that Elon Musk tweeted out that Tesla will no longer accept Bitcoin. He's either the greatest pump and dumper to exist or now a heavy bag holder with diamond hands. Additionally, last Thursday the Fed said crypto possess risks to financial stability, indicating that greater regulation of the currency may be warranted. The U.S. Treasury Department announced a proposal yesterday that required business-related transactions over $10,000 to be reported to the IRS. Uh oh.
GameStop claws back
After a dizzying short squeeze in early 2021, bringing in gains roughly around 2,700% with a $40 billion valuation, the brick-and-mortar stonk had cooled off from a high of $483 to a low of $38.50 in over a three-weeks span. That was short-lived too, as GameStop shares soared past $100 and have actually been floating above that price.
In its most recent move past $130, it's been in an uptrend that coincides with the crypto markets plunge.
You can also see that AMC has been getting short squeezed this month, something worth monitoring.
So the main question we must ask ourselves is:
With crypto dying, will this be the start of meme stock summer?
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