Bitcoin’s (BTC) upward momentum stalled today, reversing just short of reaching the $89,000 level. This decline comes after GameStop announced its Bitcoin treasury strategy on Tuesday, a move that was expected to support bullish sentiment.
BTC’s pullback coincided with a decline in risk assets in the U.S. The S&P 500 and Nasdaq indexes fell 0.8% and 1.6% respectively, erasing most of the gains they had made since the market opened on Monday.
New concerns about the U.S. debt ceiling may have increased investor caution. The Congressional Budget Office has warned grimly that the federal government could run out of money by August if lawmakers fail to raise the debt ceiling. In addition, new U.S. tariffs set to take effect on April 2 could further dampen investor confidence.
Despite GameStop’s decision to adopt a Bitcoin treasury strategy, a move similar to MicroStrategy’s aggressive BTC accumulation, the BTC price has failed to sustain upward momentum. Investors and analysts are now questioning whether traditional institutional BTC buying can still drive rallies.
Zombie Companies Like GameStop Clinging to Bitcoin for Salvation Is Proof That BTC Has Peaked, Analyst Says
“Zombie companies like GameStop ‘doing a Saylor’ as a get-out-of-jail-free card would be a clear bullish signal,” said James Check, a prominent crypto analyst. Check reiterated his concerns on Tuesday evening following GameStop’s announcement, and had made similar points a year ago.
Check also compared the current situation to public Bitcoin miners in previous cycles, where capital-intensive firms preferred to hold excess BTC beyond their mining revenues, but then faced liquidity issues.
*This is not investment advice.
