BeInCrypto Weekly News Roundup: January 29, 2021

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In Brief
  • In this Weekly News Roundup, BiC highlights the power that decentralized networks have over traditional finance.

  • There was also the GameStop fiasco which grabbed the attention of social media.

  • Bitcoin briefly dipped below $30,000 but has rebounded sharply.

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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).

GameStop (GME) Witnesses a Short Squeeze That Leads to an Epic Pump

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.

Bitcoin Dips Below the $30,000 Psychological Barrier

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?

DEX Volume Explodes to $43.5 Billion in Just Over a Year

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.

Cumulative monthly trading volume has grown by over 1000% since 2019. Ethereum-based DeFi platforms like Uniswap, Sushiswap, and Curve are leading the market.

Thanks for tuning in to this weeks roundup. See you again next week!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

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