Share this article
Bitcoin Rally Reverses Despite Supposedly Bullish GameStop News
At least one analyst questioned why GameStop's plan to buy bitcoin was necessarily a good thing.
Updated Mar 26, 2025, 4:22 p.m. Published Mar 26, 2025, 4:19 p.m.
Make us preferred on Google
What to know:
- Bitcoin declined back below $87,000 during U.S. trading hours on Wednesday as gains following GameStop's bitcoin treasury announcement overnight proved short-lived.
- One well-followed analyst questioned why GameStop buying bitcoin would even be considered bullish.
- Risk assets in general were sliding on Wednesday, perhaps putting pressure on crypto.
Bitcoin's rise following GameStop's Tuesday bitcoin treasury strategy announcement halted just shy of the $89,000 level and things are now headed decidedly lower during U.S. trading hours Wednesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Just after the noon hour on the east coast, bitcoin has pulled back about 3% from overnight highs to $86,500. The broad-market crypto benchmark CoinDesk 20 Index was 1.9% lower through the past 24 hours, with ether , solana and AAVE declining around 3%-4% during the same period.
The price action happened with U.S. risk assets showing weakness. The S&P500 and Nasdaq indexes were down 0.8% and 1.6%, respectively, erasing most of their gains since Monday's opening.
Fresh concerns over the U.S. debt ceiling perhaps loomed over markets. The Congressional Budget Office issued a warning today that the federal government may run out of money as soon as August if lawmakers don't raise the debt limit. U.S. tariffs, poised to go into effect on April 2, could also be weighing on investor nerves.
"Uncertainty surrounding U.S. trade policy and the broader political landscape remains front of mind," analysts at hedge fund QCP said in a Telegram broadcast. "The market still lacks clarity on the scope, timing and magnitude of these potential actions. Until then, we expect more sideways volatility."
Is GameStop buying bitcoin even bullish?
Bitcoin bulls, meanwhile, are once again left scratching their heads as the price fails to react positively to news of yet another deep-pocketed buyer planning to invest in the world's largest crypto.
"Zombie companies like GameStop 'pulling a Saylor' as a get out of jail cared would be a clear topping signal," said James Check, first one year ago and then again Tuesday evening following GME's announcement.
He reminded that he said similar about publicly trader miners when those capital-burning companies decided to stack bitcoin beyond what their mining activity provided.
"Three months ago I couldn't make a case for where this cycle's excess sell-side comes like we saw in the 2022 bear market ... I suspect in a few months time, I will be able to make a case once again."
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
