GameStop gained popularity in 2024 when a popular finance influencer, Roaring Kitty supported its stock, GME. Interestingly, someone even launched a crypto token on this, which was widespread in the crypto industry. Every time the stock’s worth grew, so did that token’s as investors built a connection between them. Interestingly, the gaming firm has also taken a step toward crypto adoption as the firm’s board member approved adopting Bitcoin, resulting in a 30% GameStop token price. Why? Let’s discuss this.
GameStop Token Price up 30% Amid Bitcoin Adoption Approach
GameStop’s board of members has unanimously approved the decision to adopt Bitcoin (BTC) for its treasury reserve. With an X post, the firm revealed the updates in the company’s investment policy, which now includes Bitcoin as a Treasury Reserve Asset. Interestingly, this decision aligns with MicroStrategy and Tesla’s BTC integration.
More importantly, CEO Ryan Cohen had already hinted. Previously, he posted a photo of himself with Bitcoin advocate Michael Saylor. The CEO of Strive Asset Management, Matt Cole, also urged the gaming firm to allocate nearly $5 billion in crash reserves to Bitcoin.
Although the firm has not disclosed the allocation, this news was significant enough to boost the stock price. More importantly, the GameStop token price surged 30% and currently trades at $0.002365 with a market capitalization of $16.28M per CoinmarketCap.
Additionally, investor enthusiasm has been heightened since Donald Trump signed the U.S. Strategic Bitcoin Reserve, so this news is another bullish add-on. As a result, the investors jumped into the opportunity, increasing the trading volume by 82% to $9.18M.
Experts believe the GameStop BTC adoption could influence the government’s decision to launch the reserve.
GME Price’s 93% Drop from ATH Sparks Concern
Although the recent surge is significant, there is more to go due to its prolonged downtrend. Under the influence of the bullish crypto market and Roaring Kitty’s post, GME token hit the ATH peak of $0.03201 in January 2024. However, ever since then, the downtrend has been persistent.
It is now 93% down from the ATH as it lacked any significant bullish uptrend this year. More importantly, the market is also not entirely favorable as the investors’ bearish sentiments overtook. The firm’s decision to adopt Bitcoin for its reserve holding is the much-needed bullish push.
Will the GameStop Token Price Rally Sustain?
As the GME token price has moved down from the peak, it indicates that the investors’ sentiments aren’t confident enough. Moreover, its prolonged downtrend is still in the chart, and the short-term surge could result in sellers jumping into taking the profit.
If the investors’ optimism remains high around this Bitcoin integration, the rally can be sustained. However, it will require further updates, BTC buying news, and similar factors.
Notably, MicroStrategy’s BTC buying resulted in the MSTR stock price rally; the GME stock price may witness similar results, directly influencing the GameStop token price.
The post Why is GameStop Token Price Up 30% Today, and Will it Sustain? appeared first on CoinGape.
