Bitcoin (BTC) upward momentum has halted today, turning it back to a level that hasn’t reached the $89,000 level. The decline comes after GameStop announced its Bitcoin financial strategy on Tuesday.
BTC’s pullback coincided with a decline in US risk assets. The S&P 500 and NASDAQ indexes fell 0.8% and 1.6% respectively, quenching most of the profit they made since the market opened on Monday.
New concerns about the US debt cap may raise investor attention. The Congressional Budget Office has warned strictly that the federal government can run out of money by August if lawmakers fail to raise their debt caps. Additionally, the new US tariffs set to take effect on April 2 could further undermine investor confidence.
Despite GameStop’s decision to adopt a Bitcoin Treasury strategy, a move similar to MicroStrategy’s aggressive BTC accumulation, BTC prices were unable to maintain upward momentum. Investors and analysts are now questioning whether traditional institutional BTC purchases can promote gatherings.
Zombie companies like GameStop cling to Bitcoin for salvation are evidence that BTC has peaked, analysts say
“A zombie company like “Saylor” like GameStop will be a clear bullish signal for a card that doesn’t break down,” says James Cek, a well-known crypto analyst. Check repeated his concerns on Tuesday evening following the Gamestop announcement, citing similar points a year ago.
We also compared the current situation with the public Bitcoin miners of previous cycles. This was a liquidity problem, although capital-intensive companies preferred to hold excess BTC beyond mining revenues.
*This is not investment advice.
