Partnered With:

GameStop, Tesla, Moutai, Bitcoin, the global market is in a group

Read this article in 16 Minutes

Bloomberg: "It's all a bubble, and the only option is to keep buying."

GameStop is undoubtedly the hottest hotspot in the global secondary market at the moment, not Tesla, not Bitcoin, but GameStop (GME), which had almost zero Google search trends before.

GME’s stock price soared from 19.95 to 147.98 in 14 trading days, an increase of 641.75%. In pre-market trading on Jan. 27, GME rose another 118%.

This is described by the market as a confrontation between retail investors and short-selling institutions. Judging from the current results, institutions have been subjected to "cyber violence" up.

Just before press time, short seller Merlin Capital chose to close its short position in GME.

GME

GameStop is an American distributor of video games, consumer electronics and wireless services. In the era of the Internet, physical games sold in physical stores have become less and less popular, which directly led to the decline in GME's performance and became the target of airdrops. In 2015, GME stock began to gradually decline, and in 2019, the lowest price was even less than $4.

However, GME was When these short-selling companies were about to go bankrupt, retail investors couldn't stand it anymore, so I don't know when it started, and an atmosphere of "saving" GME formed in the market. Among them, Reddit netizens on well-known overseas forums are the representatives. In the r/wallstreetbets column, a netizen named DeepFxxingValue is called the leader of this movement.

In addition, users of the business section on 4chan, a forum that has been keen to discuss the encryption market, have also noticed this abnormal Wall Street Air Wars, a forum that only cares about 100 times encrypted currency on weekdays, discussed the GME stock price everywhere.

< /p>

According to DeepFxxingValue’s view, not only will GME not be forced to zero, but the price will gradually pick up and eventually lead to the constant short sellers "Surrender", repurchasing stocks to cover positions. In this way, a "short squeeze" scenario will appear, and the stock price will eventually skyrocket. So DeepFxxingValue started buying GME call options in 2019 and has persisted until now.

Screenshot of DeepFxxingValue’s purchase of GME options in 2019

In the past, this is probably just a stupid idea that everyone regards as a retail investor. However, 2021 continues the magic of 2020, and GME's stock price seems to be really moving according to DeepFxxingValue's plan!

At the same time, the world’s top KOL and Tesla CEO Elon Musk also posted on Twitter, shouting "Gamestonk !” (Rhythmic BlockBeats note: Stonk is intended to describe the stock’s big rise or fall, which is exciting). Perhaps Musk also thought of the downturn when Tesla was jointly short-sold by many institutions before, and was excited about GME's Jedi counterattack at this moment.

< /p>

Let's take a look at the synergy of all these premises: GME's single-day trading volume ranks first in the US stock market, with a single-day trading volume of 21.94 billion US dollars, surpassing Tesla and the S&P 500 Index ETF , Apple, Microsoft and other bull stocks have become the world's largest gambling pool.

GME Single-day trading volume

During the period after 2019, GameStop's self-rescue and "retail investors" Full support, on January 27, 2021, GME's stock price soared to $324 before the market, a pre-market increase of 118.5%, and just a few days ago, GME's stock price was less than $20.

So far, the big shorts have been perfectly "harvested".

During more than a year from 2019 to 2020, DeepFxxingValue will issue its own positions at regular intervals However, his initial investment principal of US$53,566 eventually became US$22,845,638 in 2021 under his insistence....

Closed 2 January 26, 2021 The income of DeepFxxingValue

No matter how the GME war ends, this is a standard KOL call + fund group "Feat", and looking at the world, the cryptocurrency market, or the A-share market, are all performing the same story.

A shares held by the Fund Group

According to data from the Asset Management Association of China, the total net value of public funds under management has reached 19.89 trillion yuan, setting a historical record. At the same time, according to the third extreme data in 2020, the total scale of private equity fund management reached 15.81 trillion yuan.

Public Fund Industry Data

Users who are not sensitive to data may not be able to understand the huge amount of funds currently managed by public and private equity funds. It should be noted that Japan’s GDP in 2019 is 35.095 trillion yuan, which is lower than the current sum of public funds and private funds.

Among them, E Fund ranks first in public offering funds with an average monthly management scale of 613.9 billion yuan. According to the positions announced by E Fund in the fourth extreme in 2022, there are six liquor stocks in the top ten positions. Therefore, E Fund is dubbed by netizens as one of the world's three major wineries, which are as famous as "Romanee-Conti" and "Lafite".

The same as E Fund, there is also Nuoan Growth, which has a full position in the semiconductor chip industry stocks, so it also Netizens jokingly call it one of the world's three major chip bases, the other two being "Silicon Valley of the United States" and "Taiwan".

Behind the grouping of funds is the continuous entry of retail investors. You can go to any social platform without exception: WeChat Tutorials on using Huabei to cash out and buy funds appeared on the blog, and a large number of fund listings began to appear on the "Daily Life of Small Retail Investors" on Immediately, and the circle of friends was no exception.

Even the fund industry has begun to "fan circle". Zhang Kun, the star fund manager of E Fund, has attracted the attention of a large number of retail investors because of the sharp rise in the liquor stocks he holds. Some fans even established the "E Fund Zhang Kun Global Support Club".

Source: Weibo

A-shares do seem to be in a bull market, and the index keeps rising, but the essence is not much different from US stocks. There are only a few stocks in Nasdaq that are skyrocketing, and the same is true for A-shares, such as Liquor.

The "Liquor Concept" sector, which has a significant grouping effect, will increase by as much as 139% in 2020, while the A-share market in 2020 will The median increase was only 3.4%.

Institutions hold Bitcoin

In 2020, not only funds will form groups, but institutions will also start to form groups. Institutions chose to buy Grayscale Bitcoin Trust GBTC, and listed companies directly bought Bitcoin, allowing Bitcoin to rise from $10,000 to $40,000 without resistance.

Rythm BlockBeats previously counted that 19 listed companies bought about 75,000 bitcoins, worth about 2.35 billion Dollar.

Traditional financial institutions, trusts, and funds hold about 60 million GBTC, accounting for 10.26% of the total circulation. Among them is the hottest queen on Wall Street, Catherine Wood, known as the female version of Buffett. The ARKW fund in her hand allocated Bitcoin with a 3.28% position.

At the end of September 2020, the price of Bitcoin skyrocketed from US$10,500 to US$29,300 at the end of December, an increase of 189%. The market value of Bitcoin has also entered the top fifteen global assets, second only to well-known assets such as Apple, Microsoft, and Amazon.

The secondary market has developed to this extent, there is no difference, there is no obvious separation between US stocks, A shares, and cryptocurrencies , All the funds are targeting the hottest areas in the current market. All the fundamentals may be meaningless. Hot money represents everything. We all know it is a bubble, but is it important?

As Bloomberg said, "There are bubbles everywhere, and the only option is to continue buying."