Why did the GME share price decrease by 25 % after the Bitcoin Treasury and will it be recovered?

The Bitcoin adoption rate exceeds, and even the famous Games Organization, Gamesstop, decided to adopt it for its cabinet, which affects the price of its share. This decision is in line with many companies such as Microstrategy, Metaplanet and others. Interestingly, investors initially took as positive news, but later, the price of the GME share decreased. What happens and will recover?

Why did the GME 25 % share price decrease today?

In contrast to the GME price of 16 % on March 26, 25 % was broken today. The previous support came immediately after the announcement, as the investors considered a very bullish opportunity. Interestingly, besides this, the GME MEMECOIN price, which is 30 %, increased.

At that time, the Gamestop sale volume rose about $ 30.85 million on March 27 after a huge increase in 234 %. Interestingly, this level was closer to short pressure 2021. In addition, the Gamestop trading volume reached its peak amid price increase.

However, all of this came with the Gamtsop plan to raise $ 1.3 million to buy Bitcoin for her wardrobe. The feelings of the investor were affected because the company issues debts for purchase because it intends to make sentences for transfer capable of 1.3 million dollars in 2030. The same reaction was observed during Microstrategy’s note problems.

Experts participate in linking these events before predicting the massive stock price in GME.

In 2021, MSTR issued $ 1.05 billion of 0 % transfer notes, the stock decreased after the announcement due to the short pants, but later exploded when Bitcoin exploded and uncomfortable pleasures.

What are experts to buy Gamestop Bitcoin?

Although there are mixed feelings about Bitco Bitcoin Gamestop news, experts appreciated this approach. Margia Smith called “a zero -step, which is likely to set cash reserves> $ 6 billion.”

However, other concerns that Gamestop may lose money if the price of bitcoin decreases. This is because Ryan Cohen, the president, got the interest -free loan, but he still owes money until 2030, and anything can happen between this.

Experts also believe that this strategy can affect the pressure of short Gamestop shares. They claim that if the price increases, bond holders prefer to convert their bonds. As a result, the width will increase and affect pressure in a limited way.

In addition, institutions can transform their bonds to surround their losses. This enables them to control the upper direction. Moreover, the biggest question is whether the downward trend will continue.

Will the GME share price be returned?

Looking at the MSTR bullish gathering with Bitcoin purchase, it is expected that the long -term path for Gamestop Stock is optimistic. Currently, the loan of $ 1.3 million on the feelings of investors, which led to hill liquidity.

However, this declining trend will continue for some time, as many technical factors highlight the possibility of a collapse to $ 16.83. This is because if the pressure pressure continues, this is a major support that carries liquidity.

In addition, NASDAQ has applied the open -sales restriction (SSR), which will expire soon. As an effect, the short seller will bring the market to enter strongly, which may lead to more GME collapse of the stock price.

After the rapid bounce test on $ GME, he sees the continuation of the declining liquidity. With LDPM-L7 (brown line) failed to support, the next step is LDPM-L1 (pink line) at approximately $ 16

Not to mention that the conversion of bonds poses risks due to transfers, mitigation and market feelings constantly. If all factors are aligned, the price may be suspended, but the increase in buyer’s pressure may bring different results

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Bouja Khargia

With a deep -rooted passion for reading and five years experience in writing the content, POOJA is now focusing on formulating content direction around the cryptocurrency market. As a dedicated encryption journalist, Poja is constantly looking for topics and media statistics to create convincing pieces for encryption lovers. Staying in view of the latest trends and progress in this field is an integral part of its daily routine, which provides a commitment to provide time in time and insight.

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