GameStop slumps after hearing, BlackRock ‘dabble’ in BTC
By John Shepard
10:00, 19 February 2021
GameStop sheds 11 per cent after Keith Gill sued
Retail stock GameStop (GME) has shed 11 per cent after the Congressional hearing into a recent short squeeze. One of the proponents of the stock’s gains is also being sued for $5m over the alleged manipulation.
The lawsuit stated: "To orchestrate the manipulation of GameStop stock, Gill created a far-reaching and wildly successful social media campaign in the year leading up to the surge in GameStop shares."
GME stock closed at $40.69, which is the lowest price since 20 January 2020. AMC Entertainment (AMC), which was also involved in the Reddit trading frenzy, held up at only -0.72 per cent. This is a sign that the stock has finally disconnected from moves in GME. AMC closed at $5.51 and this level has propped the stock up for seven trading sessions now.
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Bitcoin supported above $51,000
Bitcoin (BTC) has pulled back from the recent highs above $52,000, but the coin is well supported above the $51,000 level. No major selling is appearing in Bitcoin and this gives hope for another push higher.
Bullish crypto traders were boosted by news that BlackRock, the world’s largest asset manager, had “dabbled” in BTC. A company executive told CNBC it was investing despite the volatility, saying: "People are looking for places that could appreciate under the assumption that inflation moves higher and that debts are building, so we've started to dabble a bit into it".
BTC is up more than 70 per cent in 2021, building on a rally that began in mid-2020.
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