While several experts, including Scion Capital’s Michael Burry, have termed the rally as “insane” and “dangerous,” there is at least one analyst who thinks this short squeeze can serve as a positive backdrop for Bitcoin (BTC).
What Happened: According to SkyBridge Capital’s Anthony Scaramucci, the GameStop rally is a symbol of decentralized finance and the low-cost trading led by retail investors is a sign of democratization of what was until now “an insular and highly concentrated business of money management,” Bloomberg reported.
“The activity in GameStop is more proof of concept that Bitcoin is going to work,” Scaramucci told the newswire. “How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance.”
As per the analyst, we are now in the age of the “micro investor” and those who don’t take it seriously will “get taken to the cleaners.”
Why It Matters: Bitcoin has itself seen a dizzying rally that saw it surge from trading below $10,000 levels in July last year to above $41,000 earlier this month.
The rally has muted since, paving way for altcoins, with Bitcoin trading at $31,236.80 at press time.
Several analysts are cautioning that while Bitcoin’s outlook may be bearish in the short-term, the long-term prospects remain positive.
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