Bitcoin Retreats Despite GameStop’s Bitcoin Investment Announcement
At least one analyst is questioning whether GameStop’s decision to buy bitcoin is truly a bullish development.
Bitcoin’s (BTC) rally stalled near $89,000 following GameStop’s Tuesday announcement of its bitcoin treasury strategy, with prices now trending lower during U.S. trading hours on Wednesday.
By early afternoon on the East Coast, bitcoin had dropped roughly 3% from its overnight high, settling around $86,500. The broader crypto market followed suit, with the CoinDesk 20 Index down 1.9% over the past 24 hours. Ether (ETH), Solana (SOL), and AAVE posted declines between 3% and 4% during the same period.
The downturn coincided with weakness in U.S. equities, as the S&P 500 and Nasdaq slipped 0.8% and 1.6%, respectively, erasing most of their gains from earlier in the week.
Macro Uncertainty Pressures Markets
Concerns about the U.S. debt ceiling may be weighing on investor sentiment. The Congressional Budget Office issued a warning that the federal government could run out of funds as early as August if lawmakers fail to raise the debt limit. Additionally, new U.S. tariffs set to take effect on April 2 are adding to market anxiety.
“Uncertainty surrounding U.S. trade policy and the broader political landscape remains a key concern,” analysts at hedge fund QCP said in a Telegram update. “The market still lacks clarity on the scope, timing, and impact of these potential actions. Until that changes, we expect continued volatility.”
Is GameStop’s Bitcoin Move Really Bullish?
Despite GameStop joining the growing list of corporations investing in bitcoin, the market reaction has been lukewarm.
“Struggling companies like GameStop adopting a MicroStrategy-style bitcoin strategy as a lifeline could actually be a warning sign,” said analyst James Check, echoing a view he shared last year and reaffirmed after GameStop’s announcement.
He pointed out that a similar pattern emerged when publicly traded bitcoin miners—many of which were cash-burning operations—began accumulating bitcoin beyond what they mined.
“Three months ago, I couldn’t pinpoint where the next wave of excessive sell pressure would come from, similar to what we saw during the 2022 bear market,” Check said. “But in a few months, I suspect that picture will become clearer.”
