After months of bullish sentiment, it appears that Bitcoin and the crypto market has started to quiet down. But that doesn’t mean decentralized networks aren’t on the verge of disrupting traditional systems.
In this edition of the Weekly News Roundup, BiC explores the fiasco between hedge funds and Reddit traders in the GameStop stock. We also follow bitcoin’s dip below $30,000 and the massive adoption of decentralized exchanges (DEXs).
The movement is led by a courageous yet wild bunch of traders over at the WallStreetBets subreddit. Retail investors siphoned off billions of dollars from institutional investors by defying traditional market logic and pumping up the price.
GameStop had year-over-year revenue declines, a factor that led to massive short positions against the stock. For some reason, WallStreetBets traders decided to target this stock. By doing so, they defied the momentum of short-sellers, pumping it up to crazy numbers.
Hedge fund managers and institutions subsequently complained about the legality of this ‘manipulation.’ Crypto Twitter users meanwhile quickly pointed out the double standard. Even Elon Musk got in on the action, tweeting “GAMESTONKS” in support of the movement.
The euphoria may be slowing down, with bitcoin’s price dipping below a major psychological barrier. Bitcoin saw a 10% price drop on Wednesday, marking the second time in a week the world’s leading cryptocurrency dropped below this level.
The hype may be dying down from its 2020 highs. Or has it? Btc recovered dramatically on Friday to its current price of around $35,000. The volatile price action may have shaken things up a bit. But will it continue into the weekend?
Possibly the most overlooked story of the week goes to the massive growth of decentralized exchanges (DEX). With the first DEX launching years ago, it’s hard to comprehend the growth they’ve experienced over the last 12 months.
According to on-chain data aggregator, Dune Analytics, monthly volume across decentralized exchanges has increased from an average of $40 million to over $45.2 billion.
Thanks for tuning in to this weeks roundup. See you again next week!