GameStop (GME) shares have outperformed Bitcoin’s (BTC) annual returns in just one day, sparking speculation that some of the profits could flow into the altcoin market, much like in the previous bull cycle.
According to TradingView, GameStop shares have seen a 154% increase on the yearly chart, surpassing Bitcoin’s 129% annual returns.
Most of GameStop’s gains occurred in the past two days, with the stock price rising by over 105% on May 14th.
The rally began on May 13th when Keith Gill, the man credited with initiating the 2021 GameStop short squeeze, made a surprise return to social media after a three-year absence.
During the COVID-19 pandemic, Gill played a pivotal role in the GameStop saga, where retail traders overwhelmed hedge funds that had shorted the stock. This frenzy led to a monthly price increase of over 1,000% for GameStop shares.
Following Gill’s return, GameStop shares surged by as much as 111% within 24 hours. During the same period, Dogecoin (DOGE) and Shiba Inu (SHIB) gained 6.2% and 5.4% respectively.
The revival of the GameStop saga has rekindled optimism in altcoins, as the previous cycle saw an altcoin rally shortly after the GameStop short squeeze.
Crypto analyst CryptoAmsterdam pointed out that the altcoin season in 2021 was triggered by the GameStop rally, citing historical chart patterns.
CryptoAmsterdam also noted that the current market capitalization of altcoins is similar to the setup in 2021 that catalyzed the altcoin bull cycle.
Rekt Capital’s analysis aligns with this projection, as it anticipates altcoins to reach a local bottom in early June before the start of the altcoin season.
While most altcoins have not responded to the GameStop rally, certain memecoins like Pepe (PEPE) have already experienced significant gains, reaching a new all-time high above $0.000010 on May 13th.
However, the investing landscape is different from 2021, with smaller outstanding shorts on GameStop, which could limit the extent of the upward movement, according to eToro market analyst Josh Gilbert.
Gilbert emphasized that this article should not be taken as investment advice and urged readers to conduct their own research before making any financial decisions.