Why Bitcoin’s Rollercoaster Just Took a Nosedive (Thanks, GameStop?)

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What You Should Probably Know (But Won’t Want to Admit):

  • Bitcoin stumbled back below $87,000 while the GameStop hype was still trying to ride high on its coattails—turns out, the excitement was more of a brief spark than a bonfire.
  • One sharp-eyed analyst was wondering out loud why anyone would think GameStop buying Bitcoin would be a bullish move. I mean, it’s GameStop. What’s next, Blockbuster buying up VHS tapes?
  • Meanwhile, everything else in the market looked like it was in a bit of a panic, so, of course, crypto had to follow suit. Who wouldn’t want to join that parade?

Bitcoin, that darling of the digital world, saw its price climb after GameStop’s Tuesday announcement, only to come to a screeching halt just shy of $89,000. And just like that, the rug was pulled. It’s almost as if someone whispered, “Hey, this might be a terrible idea.”

Fast forward to lunch on the East Coast, and Bitcoin’s taken a 3% dive to $86,500. The CoinDesk 20 Index, our crypto barometer, wasn’t looking too hot either, dropping 1.9%. Oh, and don’t even get me started on ether (ETH), solana (SOL), and AAVE—those poor coins dropped around 3%-4% in the same period. It’s like watching a parade of sad, overpriced fireworks fizzle out one by one.

What happened to cause such a tumble? Well, U.S. risk assets were having a rough day too. The S&P 500 and Nasdaq indexes were down by 0.8% and 1.6% respectively, making everyone rethink their life choices from Monday’s excitement.

And then, there’s the little matter of the U.S. debt ceiling. Yes, we’re back to this thrilling plot twist. The Congressional Budget Office kindly warned that the government might run out of money come August if no one gets their act together. Oh, and U.S. tariffs scheduled for April 2 could be putting investor nerves to the test, too. It’s like a ticking time bomb of economic drama!

“Uncertainty surrounding U.S. trade policy and the broader political landscape remains front of mind,” said the analysts over at hedge fund QCP, probably while sipping their lattes. “The market still lacks clarity on the scope, timing and magnitude of these potential actions. Until then, expect more sideways volatility.” Well, that sounds comforting… not.

Is GameStop Buying Bitcoin Actually… Bullish? Really?

And then we have the Bitcoin bulls. They must be feeling like they’ve just been told that their favorite rollercoaster ride was closed for maintenance. Why? Because the news of GameStop diving into Bitcoin didn’t exactly cause the price to surge like a rocket to the moon. In fact, it did the opposite—again. It’s as if the market is saying, “GameStop? Buying Bitcoin? Yeah, sure, that’s just what we needed.”

James Check, that ever-cynical analyst, wasn’t having any of it. He put it bluntly: “Zombie companies like GameStop ‘pulling a Saylor’ as a get-out-of-jail card would be a clear topping signal.” Ah, yes, GameStop trying to escape its identity crisis by stacking Bitcoin. Brilliant strategy. What’s next, a GameStop NFT for every copy of *Halo 2* they can find?

He even threw some shade at publicly traded miners who decided stacking Bitcoin was a good idea, even though they were burning capital faster than a wildfire. Classic move, right?

Three months ago, he was stumped about where this cycle’s excessive sell-off might come from—flash forward to today, and he’s still not sure. But give it a few months, and he’s betting he’ll have a clear answer. Spoiler: it probably won’t be pretty.

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2025-03-26 20:55