Hedge Fund Manager Says GameStop Rally is Beneficial for Bitcoin
Retail investors cheered this morning as hedge funds covered their shorts on GameStop and drove the price up to nearly $400 per share. Scaramucci believes that this event was an indication of the power in decentralized finance. Investing has been completely turned on its head as low-cost online trading and high savings rates have opened the door for retail investors to flood the market.
"The activity in GameStop is more proof of concept that Bitcoin is going to work," he said. "How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance." Short-sellers have lost around $5 billion on GameStop, according to data from S3 Partners. In 10 trading days, GameStop shares are up more than 600 percent.
The event has raised scrutiny from many investors who believe trading should have been halted. "It's the age of the micro investor and you better take it seriously - otherwise you'll get taken to the cleaners," Scaramucci said. Scaramucci has a $385 million position in Bitcoin, according to Bloomberg.
Last year, Bitcoin was the best-performing asset in the world, surging 300 percent. The current price of Bitcoin is around $32,000 as of Thursday morning.