AMC ‘meme stock’ frenzy may spill over to crypto as Bitcoin metric nears buy zone


Bitcoin (BTC) is slowly but surely preparing to flash the “buy” signal, a key indicator suggests as a trading frenzy reignites memories of the GameStop debacle.In its latest report from June 3, Stack Funds highlighted the Puell multiple nearing the green “buy” zone — a signal to enter the market.Puell multiple drops to pre-2021 levelsThe Puell multiple is one of the best-known BTC price tools. Its readings judge the likelihood of a sell-off or uptick based on miner profitability. Currently, it makes little sense for miners to sell unless out of sheer necessity.”The metric is now trading at the 1.40 level, closer towards the green zone, where miners have a lesser incentive to sell. This signifies potential buying opportunities should the multiple declines to below 1.0,” Stack Funds head of research Lennard Neo explained. “Having said that, we prefer to be cautiously optimistic as further downside could surface, which in turn generates better value for anyone looking for entry points.”Bitcoin Puell multiple vs. BTC/USD. Source: CryptoQuantAs Cointelegraph reported, Stack Funds is not alone in arguing that the chances of a further price dip are worth considering. Traders are also eyeing a retracement, with at least one saying that it is all but certain that further upside will only come after a return to $36,000 for BTC/USD.Neo further pointed to several other, albeit unnamed, metrics pointing to a bullish continuation this week that cover the short- to mid-term range.Release the memes?Meanwhile, a return to volatility — now firmly in the cards this week — could come from retail traders.In a scene reminiscent of the GameStop stock trading escapades from quarter one this year, Reddit users have turned their attention to another underperforming company’s equity and inflated its price accordingly.AMC Entertainment (AMC) 1-day candle chart (Cboe). Source: TradingViewAMC Entertainment, a loss-making United States movie theater chain, has seen huge gains — at one point over 1,000% year to date — and filed to sell 11 million shares. Should history repeat itself, some argue that investors could reembrace altcoins next — in particular, memecoins to complement the “meme stocks” phenomenon.It might like in last January.First, $GME and $AMC pumping…And then main cryptos + altcoins.— Allan Kilic (@AllanKilic) June 2, 2021

Most of the major cryptocurrencies were flat on June 3, however, with Dogecoin (DOGE), the meme star of much of 2021, down around 1.5%.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 66,311.77
ethereum
Ethereum (ETH) $ 3,172.89
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 602.11
solana
Solana (SOL) $ 154.29
usd-coin
USDC (USDC) $ 0.999273
xrp
XRP (XRP) $ 0.550698
staked-ether
Lido Staked Ether (STETH) $ 3,171.82
dogecoin
Dogecoin (DOGE) $ 0.158103
the-open-network
Toncoin (TON) $ 5.56
cardano
Cardano (ADA) $ 0.510768
shiba-inu
Shiba Inu (SHIB) $ 0.000027
avalanche-2
Avalanche (AVAX) $ 38.58
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 66,347.78
bitcoin-cash
Bitcoin Cash (BCH) $ 510.28
polkadot
Polkadot (DOT) $ 7.39
tron
TRON (TRX) $ 0.112251
chainlink
Chainlink (LINK) $ 15.37
near
NEAR Protocol (NEAR) $ 6.90
internet-computer
Internet Computer (ICP) $ 14.78
matic-network
Polygon (MATIC) $ 0.730537
litecoin
Litecoin (LTC) $ 84.62
uniswap
Uniswap (UNI) $ 8.11
leo-token
LEO Token (LEO) $ 5.76
dai
Dai (DAI) $ 1.00
blockstack
Stacks (STX) $ 3.06
aptos
Aptos (APT) $ 9.89
ethereum-classic
Ethereum Classic (ETC) $ 27.96
mantle
Mantle (MNT) $ 1.20
first-digital-usd
First Digital USD (FDUSD) $ 0.998514
filecoin
Filecoin (FIL) $ 6.51
render-token
Render (RNDR) $ 9.13
immutable-x
Immutable (IMX) $ 2.40
crypto-com-chain
Cronos (CRO) $ 0.130507
cosmos
Cosmos Hub (ATOM) $ 8.82
bittensor
Bittensor (TAO) $ 510.59
stellar
Stellar (XLM) $ 0.116639
okb
OKB (OKB) $ 54.81
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,200.24
hedera-hashgraph
Hedera (HBAR) $ 0.088699
arbitrum
Arbitrum (ARB) $ 1.19
vechain
VeChain (VET) $ 0.041925
kaspa
Kaspa (KAS) $ 0.128435
pepe
Pepe (PEPE) $ 0.000007
the-graph
The Graph (GRT) $ 0.296630
dogwifcoin
dogwifhat (WIF) $ 2.77
maker
Maker (MKR) $ 2,835.77
optimism
Optimism (OP) $ 2.50
fetch-ai
Fetch.ai (FET) $ 2.42
injective-protocol
Injective (INJ) $ 28.03