The post Dogecoin Leads Meme Coin Plunge Following Citron Research’s GameStop Exit appeared on BitcoinEthereumNews.com.

GameStop stocks might dip following a volatile period, as Citron Research, under Andrew Left, announces an exit from its short position on the company. Despite acknowledging the platform’s newfound stability post its $4 billion capital boost, Citron Research remains skeptical about GameStop’s long-term sustainability. Citron’s comparisons between GameStop and popular meme coins like Dogecoin underline the research firm’s bearish stance on the retailer’s future. This article examines Citron Research’s latest move on GameStop, its impact on meme coins, and the broader implications for retail investors. Citron Research Abandons GameStop Shorts Amid Market Changes Andrew Left’s Citron Research, having faced significant losses, decided to exit its short position in GameStop. Despite this strategic withdrawal, the firm maintains its view that GameStop’s current valuation is speculative at best. This view is underscored by the firm’s public comparisons to highly volatile meme coins like Dogecoin, which boasts a market cap exceeding $20 billion. Market Irrationality and Meme Coin Comparisons Citron Research has highlighted the financial community’s occasional irrationality, drawing parallels between GameStop and meme coins. The sheer size of Dogecoin’s market valuation serves as a prime example of this phenomenon. Citron remains bearish on GameStop’s financial health, a stance that originally fueled their short position. Impact of Citron’s Exit on Meme Coins The announcement of Citron Research exiting its GameStop short positions led to an immediate drop in GME share prices. This, in turn, affected the performance of major meme coins like PEPE, FLOKI, and ROAR, all of which experienced significant declines. CoinMarketCap data indicates a notable double-digit downturn for most meme coins in recent trading sessions. Decline in Meme Coin Valuations One notable example is Roaring Kitty (ROAR), which has plummeted by 30% over the past week. This decline occurred despite the anticipated live stream by Keith Gill—known as “Roaring Kitty”—that failed…

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Filed under: News - @ June 14, 2024 4:10 am