Somehow, you could almost have bet on it. In the last two days, the pump-and-dump scheme of Reddit forum WallStreetBets (WBS) has shot up NYSE-listed GameStop‘s stock from somewhere around $5 to over $400 in some cases. A combined effort of several million investors coordinated through the Reddit forum. The fellows see themselves as heroes who can win against Wall Street’s short-sellers. Today, bitcoin (BTC) follows that pattern, shooting up from under $33,000 to nearly $38,000 within an hour on super-high volume. The pump is still on. The crash will follow suit as it did with GameStop.
Ethereum (ETH) has moved relatively little in parallel. The entire volume of the pump flowed exclusively into BTC. This is also an indication that this is a targeted and coordinated pump a/k/a market manipulation. Most likely, we see the BTC price go back significantly soon.
This game is reserved for the people who participate in these pump-and-dump schemes. For everyone else, it’s a gamble. We advise investors to participate in such pumps only with extreme caution and the knowledge of a potentially high loss.