Another Sign Meme Stocks and Crypto are the Same Trade
(Bloomberg) -- The meme stocks are going nuts again today, with AMC surging pre-market. It feels like we’re in this never-ending market timewarp where the same stories keep happening day after day. In addition to AMC going nuts, there’s another story about traders buying a stock because of an Elon Musk tweet. It never ends. Also Dogecoin is up over 30% over the last 24 hours after Coinbase Pro added it to its trading platform.
If it all looks like one big trade, well… there’s a reason for that.
If you look at Google Trends searches for Bitcoin and Ethereum, you can see they’ve come down a little bit lately. But it’s interesting to look at the related searches for both, which show a large crossover between them and the memestocks like Gamestop and AMC.
One question is, what does this mean for crypto? One interpretation is that it’s just a gambling, speculation thing without much fundamental underpinning. The other possibility is that while it starts as a gambling thing, because people get hooked on the volatility, that it in turns drives “adoption” (or whatever that means) thanks to its popularity.
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