Bitcoin briefly topped $70,000 on Monday, fueled by a surge in crypto investment products and speculation surrounding meme coins following the GameStop frenzy. According to CoinShares International Ltd, crypto asset inflows reached $185 million in the week through May 31, with a total of $2 billion flowing into digital-asset investment products in May.
The rise in Bitcoin price was attributed to a spillover effect from the gains in GameStop shares, driven by the Reddit account behind the meme-stock mania of 2021. A cryptocurrency on the Solana blockchain using GameStop’s name, logo, and ticker saw a 120% increase on Monday, despite having no legitimate affiliation with the company.
Spencer Hallarn, global head of over-the-counter trading at GSR, noted that the announcement of a large GME derivative position by Roaring Kitty on Reddit catalyzed a rally in the crypto space, particularly in Dogecoin and Bitcoin. Shiliang Tang, president of Arbelos Markets, pointed to new fund inflows at the beginning of the month as another factor driving the market.
Ethereum also saw a second week of inflows, following the excitement surrounding the approval of exchange-traded funds investing directly in Ether in the US. The market remains volatile, with traders closely watching developments in the GameStop saga and the broader cryptocurrency landscape.
Overall, the cryptocurrency market continues to attract investor interest, with Bitcoin leading the way in price gains and inflows into digital-asset investment products. The GameStop frenzy and meme coin speculation have added an extra layer of excitement to an already dynamic market.