SkyBridge Capital chief calls GameStop stock pump a positive sign for Bitcoin

Activity in GameStop caused by retail traders signals a positive backdrop for Bitcoin. This view was voiced by SkyBridge Capital chief Anthony Scaramucci, according to Bloomberg.

According to him, this phenomenon demonstrates the key idea of the first cryptocurrency — financial decentralisation.

According to CNBC, the community of retail traders, united in the r/WallStreetBets group on the platform Reddit, acted against large players who had opened short positions in GameStop (ticker GME) with confidence in the near-collapse of the troubled company.

A substantial number of small players, following calls from social media, increased their buying of GME, leading to the liquidation of shorts. This amplified the price rise effect for GameStop’s shares. Since the start of the year, shares have risen from $18.84 to $342.4 at the time of writing — more than 18-fold.

Data: MarketWatch.

“Activity in GameStop is more than a proof of the concept that Bitcoin is going to work. And how to beat this crowd? For me this is another confirmation of the strength of decentralized finance,” Scaramucci said.

He noted that smartphones and low-cost trading platforms have “democratized” the previously isolated and highly concentrated asset-management business.

“This is the era of the micro-investor, and you’d better take it seriously, or you’ll only be hired as janitors,” he added.

In December SkyBridge Capital invested in bitcoin $25m, by year-end investments in the leading cryptocurrency reached $182m.

In January the company launched a bitcoin fund with assets of $310m.

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