The post GME Bears Double Down – Will a Short Squeeze Send GameStop Stock Price to ATH? appeared on BitcoinEthereumNews.com.

GameStop’s Bitcoin buying announcement has affected its stock price significantly. First, with a 16% surge to a 26% crash, the holders witnessed high volatility within just a few days. However, analysts’ mixed sentiments on this GME news hint at higher uncertainty, especially as the bears double down and hint at the possibility of either a further crash or a short squeeze. In 2021, such a squeeze resulted in the GME stock price creating its ATH. GameStop Stock Price Tumbles & Short Volume Doubles The Bitcoin treasury announcement resulted in a significant uptrend for the token, which rose to a high of $29.39. However, GameStop’s plan to raise $1.3 billion to buy Bitcoin affected investors’ sentiments significantly. Today, GME trades at $21.73, with a 26% drop from the high, indicating the investors’ concerning sentiments. The short trader’s volume had increased significantly in anticipation of a further drop. In the last 24 hours, the count has increased by a staggering 234%, reaching 30,884,606. Due to such a high count, the NYSE has put a trading restriction on the GME stock, affecting its price. GameStop Stock Price to Hit New ATH? The high count of the short volume clearly indicates that the traders are betting on the GameStop stock price drop. Although it is correct per the current scenario, investors believe this gaming firm’s stock will follow the MSTR’s price rally. Trend changes and the GME stock price surge will result in the liquidation of these shorts. As a result, the short sellers will jump into re-buying GME to restore their losses. In an optimistic scenario, this would result in generating a short squeeze, i.e., the stock’s price would rise sharply. This happened in 2021; the short volume was high, and the chain reaction resulted in the price jumping to an all-time high…

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Filed under: News - @ March 29, 2025 12:16 pm