Crypto Meltdown 2024: Why the Meme Stock Frenzy Could Mean Trouble for ETH & Tether

After three years away, Keith Gill, the driving force behind the meme stock frenzy during the pandemic, has made a sensational return to social media. His reappearance has reignited excitement in GameStop (GME) and AMC Entertainment (AMC) shares, sparking a surge of interest among retail investors.

Gill’s comeback stirred up a storm among retail investors, with comments like “he’s back,” “game on,” and “just in time for the memecoin supercycle” flooding social platforms.

GameStop and AMC Rally

Following Keith Gill’s post, GameStop’s (GME) stock skyrocketed by approximately 74.5% on Monday. Due to unprecedented volatility, the New York Stock Exchange (NYSE) had to temporarily halt trading on GME stock multiple times within the first hour of trade. 

Similarly, AMC Entertainment (AMC) witnessed an impressive 78.4% surge in its stock price on the same day.

Crypto Takes the Spotlight – Again!

Once again in 2024, AMC and GameStop have re-entered the spotlight, but this time the focus is shifting towards major players like Tether and Ethereum within the cryptocurrency sphere.

In the first half of 2022, the cryptocurrency LUNA collapsed, followed by a similar event affecting FTX in the latter half of the year. The subsequent collapse of Signature Bank in 2023 added to the narrative. These events reflect the interconnected nature of traditional markets and the crypto ecosystem.

Where Are Players Focusing?

As the focus shifts back to AMC and GameStop in 2024, discussions now revolve around larger players like Tether and Ethereum.

However, recent tensions in the crypto market have raised doubts about Tether’s stability and transparency, despite its reputation as a reliable stablecoin. Additionally, the emergence of new stablecoins presents tough competition for Tether (USDT).

Ethereum is also facing scrutiny regarding its classification as a security or commodity by the U.S. Securities and Exchange Commission (SEC). There is anticipation around the SEC’s decision to classify ether (ETH), Ethereum’s native token.

Investors eagerly await the SEC’s approval of spot ether exchange-traded funds (ETFs) this month. Should the proposal be rejected, Ethereum’s price could see a significant decline, impacting overall market sentiment.

Also Check Out : Global Central Banks Extend Crypto Regulation Deadline: The Real Reason Behind the Delay

Are you buying into the GameStop and AMC hype again?