Gamestop and a GME-inspired memecoin are rallying harder as hotter-than-expected inflation data boosts risk appetite in crypto and stocks.
The producer price index (PPI), which measures what producers receive for their goods, increased 0.5% in April and was up 2.2% on a 12-month basis, according to the latest release from the Bureau of Labor Statistics (BLS).
It was the biggest gain so far this year, and was higher than the forecasted 0.2%.
Meanwhile, stock indices have pushed slightly higher as Wall Street digests the data, and Gamestop, the meme stock that exploded in 2021 causing hedge funds to lose large amounts of capital, is continuing its resurgence following the return of the movement’s leader, “Roaring Kitty.”
GME opened the day over $64, up more than 142% from yesterday. It has since dropped down to $42, still 164% from where it finished last week.
A memecoin on Solana (SOL), which also uses the GME ticker symbol, is currently up over 2266.13% in the last seven days, prompting analysts to ask whether markets are entering another frothy altcoin season similar to the last bull market cycle of 2021.
Pseudonymous analyst Altcoin Psycho tells his 501,000 followers on the social media platform X that GME won’t simply be an “outlier.”
“Gamestop will not be the outlier here. Study 2019-2021 & think about where that money will flow next.”
The analyst says that stocks will soon “mimic 2019-2021 dynamics,” and that “2024 should be interesting.”
Others aren’t as convinced. Closely followed analyst The Flow Horse tells his 215,000 followers on the social media platform X that the hype around GME will likely be over by next week.
“Prediction.
The GME stuff is over by next week and crypto Twitter is frantically searching for any narrative rather than just waiting for better setups again.
Unless we start seeing some massive short interest build, because right now it isn’t even close to where it was during the last mania.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: DALLE3
Read the full article here
