Bitcoin to benefit from short-squeeze, say experts
written by Bella Palmer
The showdown between the "regular" investor versus big Wall Street turned ugly as several trading platforms restricted trading on the stocks
Bitcoin has been in the shadow of the "financial rebellion" in recent days as the short-squeeze trade continues, but this will lead to a wave of new crypto investors, experts say.
Bitcoin was up 6.5% to $34,663, though had been as high as $38,710, widely attributed to a show of support from Tesla CEO Elon Musk, who added the hashtag #bitcoin to his twitter bio.
In recent days, bitcoin has been in a period of consolidation as investor focus cantered on the Redditor-led squeeze on short-selling hedge funds in stocks such as GameStop, AMC and Blackberry.
The showdown between the "regular" investor versus big Wall Street turned ugly earlier this week as several trading platforms including Robinhood restricted trading on the stocks, sparking a sharp selloff.
The feeling of injustice among retailer traders participating in the short-squeeze has not gone unnoticed and will be viewed in history books as an "unintentional start to a financial rebellion,” said Nicholas Pelecanos, head of trading at NEM, a technology platform that seeks to be an efficient way to manage assets and data easily and at low cost.
Unlike their more illustrious short-seller adversaries, the new wave of investors are not "colluding in secret to short a business down to 0" but are rather "openly targeting and short squeezing hedge funds," Pelecanos said.
Still, the short squeeze that has captivated global attention and brought in a wave of new investors likely represents a silver lining for bitcoin and other major cryptos.
With Robinhood halting trading of certain assets like GameStop and Nokia and NASDAQ president and CEO Adena Friedman calling for regulations to prevent retail investors from coordinating on social media, the case for cryptocurrencies only grows stronger. I believe we will witness a new wave of investors come over Bitcoin and other major crypto assets as a result of this debacle, Pelecanos added.
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