As Crypto Prices Cool, Traders Take Another Crack At GameStop And AMC

As Crypto Prices Cool, Traders Take Another Crack At GameStop And AMC
Andrew Rummer

over 2 years ago1 min

Mentioned in story

GameStop and AMC Entertainment roared higher on Wednesday in a repeat of scenes from earlier in the year when retail investors banded together on message boards like Reddit’s WallStreetBets forum to drive up the shares. 

US movie theater chain AMC (charted in blue above) rallied as much as 20% as of 12:36pm in New York, taking the price close to the intraday peak reached on January 27th. Video game retailer GameStop (in pink) climbed as much as 19% to a two-month high.  

This time around, those hoping to force short sellers to abandon their trades – a process known as a short squeeze – will find fewer investors betting on declines. The proportion of GameStop shares sold short has dropped to 20% of those available to trade, down from 148% at the start of the year, according to Bloomberg data. This so-called short-interest figure for AMC has declined to 21% from 30% over the same period. 

Trading volume in GameStop, AMC, and other so-called meme stocks is surging once more – just as interest in cryptocurrencies like bitcoin fades. Some 235 million AMC shares changed hands on Wednesday morning, making it the third-most traded stock on US exchanges. 

After bitcoin halved in value in a matter of weeks, thrill-seeking investors may be turning their attention back to the stock market. Bitcoin was up 3% to $39,000 on Wednesday, struggling to break above its 200-day moving average.

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