Paolo Ardoino, the CTO of Bitfinex, said that the sudden rise of stocks like GameStop (GME) has shined a positive light on Bitcoin (BTC), as more retail investors look to “rail against” the financial status quo.
It has been reported that Bitcoin’s price peaked north of $38,500 on January 29 (Friday), just as US stocks concluded their worst week of trading since October.
However, the divergence between BTC and stocks was partly due to a massive short squeeze of institutional investors by a Reddit group called r/WallStreetBets.
The report said that the Reddit buying frenzy was centered around GameStop, the video game and consumer electronics retailer. Elon Musk, the world’s richest man, also added the Bitcoin symbol to his Twitter page, possibly signaling his newfound support of the digital currency.
Paolo Ardoino, the outspoken CTO of Bitfinex, shares his thoughts on the GameStop short squeeze and what it could mean for Bitcoin. https://t.co/YbB071Cvgp — Cointelegraph (@Cointelegraph) January 31, 2021
Ardoino believes that the GameStop saga is only the beginning of a mass revolt against the financial status quo and that Bitcoin stands to benefit significantly from this narrative.
“Bitcoin is ascendant again as the GameStop issue takes center stage. As advocates for retail investors rail against the current structure and practices of financial markets, it is important to note that much of the work being done in the blockchain space has been inspired by these barriers.”
Ardoino further stated:
“Removing obstacles to normal, everyday working people that are building and seeking wealth growing opportunities has always been part of the ethos of crypto.”
Likewise, two weeks ago, the retail crowd was dealt a significant blow after Robinhood suspended trading of GME and other stocks over fears of extreme volatility, as a class-action lawsuit was filed against Robinhood shortly.
Thus, Ardoino is not the only one who thinks Bitcoin will benefit from the GME short squeeze but Anthony Scaramucci, the founder of billion-dollar hedge fund SkyBridge Capital, believes that GME is “more proof of concept that Bitcoin is going to work.”