A closely followed crypto strategist believes that overleveraged Bitcoin (BTC) bears are about to get wiped out. The anonymous host of the YouTube channel InvestAnswers says he sees a short squeeze coming for BTC. A short squeeze happens when traders who borrow an asset at a certain price in hopes of selling it for lower […]
The post Bitcoin Ripe for a Short Squeeze As BTC Bears Aggressively Position for Another Correction, Says InvestAnswers appeared first on The Daily Hodl.
The trading platform is reportedly concerned that the veteran meme stock trader could use his influence to pump his own GameStop holdings.
Online brokerage platform E*Trade is reportedly considering removing GameStop (GME) meme stock trader Keith Gill, known as “Roaring Kitty,” off its platform over concerns of potential stock manipulation.
Before Gill suddenly returned to X last month — which sent shares in GameStop surging — he bought a large volume of GME options on E*Trade. Some of these expired that week and likely netted him a profit, The Wall Street Journal reported on June 3, citing people familiar with the matter.
The firm and its owner, Morgan Stanley, are concerned Gill can use his influence to pump GME for his benefit and are debating whether recent posts on X and Reddit could be considered manipulation, the sources said.
Keith Gill, the trader linked to the 2021 GME short squeeze, has returned to Reddit claiming he’s made a big bet on GameStop, sending the stock’s price surging overnight markets.
GameStop (GME) surged over 19% in overnight trading after Keith Gill, known as “Roaring Kitty,” posted to Reddit that he’s holding $181.4 million worth of GME stock and call options.
Gill, the trader widely cited as a major influence on the 2021 GME short squeeze, posted to Reddit on his “DeepFuckingValue” account on June 2 for the first time since April 2021.
He shared a screenshot apparently showing he purchased 5 million GME shares for $115.7 million and put $65.7 million into call options, betting that GME would be at least $20 a share on June 21.
The appeals court judge said Robinhood “had the right” to impose restrictions on meme trade purchases.
A United States federal appeals court has upheld a decision to dismiss an investor class action lawsuit against online brokerage firm Robinhood Markets over its meme stock trading debacle in early 2021.
A total of 16 investors took part in a class action lawsuit against the trading platform in September 2021, alleging the firm restricted them from purchasing 13 “meme stocks” when hedge funds were being short squeezed in January 2021.
This stopped them reaping the profits and also caused the share prices of these stocks to plummet, they alleged.
Robinhood won a motion to dismiss the complaint in January 2022, citing the plaintiff's failure to state a claim, plaintiffs then went on to argue the decision in the U.S. appeals court in March 2023.
However, it appears the investors have hit another setback as the appeals judge has upheld the decision to dismiss the lawsuit, with U.S. Appellate Court Judge Britt Grant saying the arguments lacked legal merit.
She explained that Robinhood “had the right to do exactly what they did” because they were not legally obligated to protect these investors from pure economic loss.
This is because Robinhood was, and still is legally permitted to restrict its customers’ ability to trade securities and to refuse to accept any of their transactions, Judge Grant added.
If the investors decide to pursue the matter further, their next and final route will be through the U.S. Supreme Court — the highest court in the U.S. However, they will need to file a petition for a "writ of certiorari," which is a document asking the Supreme Court to review the case.
The Supreme Court takes on about 100-150 cases from over 7,000 reviews, so the plaintiff’s chances of having its case heard once more are likely slim.
Related: Robinhood turns profitable in Q2, but crypto revenue declines
The GameStop short squeeze happened in January 2021, which was initially triggered by users of the /wallstreetbets subreddit.
The strategy of the short squeeze was to cause big losses for Wall Street firms shorting these particular stocks, and by doing so, profiting themselves.
Another 12 stocks became part of the frenzy, including AMC Entertainment, American Airlines Group, Blackberry, Bed, Bath & Beyond, and Trivago.
GameStop stocks were however one of the largest gainers of the Reddit-fueled price pump, increasing over 9,900% from $0.86 to over $86 between Apr. 2020 and Jan. 2021, according to Macrotrends.net.
Magazine: Blockchain games aren’t really decentralized… but that’s about to change
A widely followed analyst believes that Bitcoin (BTC) is setting up for a massive short squeeze that could catapult the king crypto to levels unreached in over six months. Pseudonymous crypto strategist Kaleo tells his 554,400 Twitter followers that Bitcoin is likely gearing up for a rally to $30,000, a price level it hasn’t seen […]
The post Popular Crypto Trader Predicts Epic Bitcoin (BTC) Short Squeeze to $30,000 – But There’s a Catch appeared first on The Daily Hodl.
A popular crypto analyst is looking for clues as to why Bitcoin (BTC) suddenly broke to the upside after weeks of price action that had been sideways at best. In a new strategy session, the host of financial education YouTube channel InvestAnswers lays out the possible scenarios for his 416,000 subscribers which range from the […]
The post Here’s What Triggered Bitcoin’s Big Bounce, According to Host of InvestAnswers appeared first on The Daily Hodl.
Popular on-chain analyst Will Clemente is eyeing several key indicators that suggest a potential bear trap for Bitcoin could play out in the near future. In a new edition of the weekly Blockware Intelligence Newsletter, Clemente looks at derivatives data to see whether traders are overly bullish or extremely bearish on BTC. “We were cautious […]
The post Bitcoin Setting Up Major Bear Trap, According to On-Chain Analyst Will Clemente appeared first on The Daily Hodl.
The price of bitcoin jumped over 15% in a matter of three hours on Sunday evening and came awfully close to the $40K handle. Since then, the crypto asset has dropped back a few percentages and currently hovers above the $38K range. The entire cryptocurrency economy has spiked 9.72% rising to $1.53 trillion in overall […]
The entire market capitalization of all 10,800 cryptocurrencies in existence is down 2.8% on Monday as bitcoin has lost over 2.4% during the last 24 hours. Meanwhile, bitcoin shorts are rising again after bitcoin shorts tapped a two-year high on the derivatives exchange Bitfinex on June 25. Bitcoin Shorts Climb Higher Bitcoin (BTC) and digital […]
