Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
The volatility seen on the stock markets this week made some of Bitcoin’s recent price swings look tame. And it’s all down to a dramatic face-off between a Reddit group called r/Wallstreetbets and the short-selling hedge funds that Reddit took on at their own game.
Day traders have helped GameStop stock surge from $17.25 on Jan. 4 to highs of $483 this week — a 2,700% rise for a retailer struggling to survive in an online world. This inflicted billions of dollars of pain on established investors caught up in the short squeeze.
But Robinhood caused controversy when it restricted trades on GME stock, as well as other r/Wallstreetbets targets, including AMC Entertainment, BlackBerry and Nokia. The investing app, which has proven popular with millennials, was accused of preventing average investors from fighting back against hedge funds manipulating the market.
All of this drama could bring crypto assets into sharper focus. Industry executives have described the fiasco as a “clear indication of how broken and fundamentally rigged the traditional financial system is.”
The GameStop saga can be linked to several of the other top stories this week. Tesla CEO Elon Musk has been among those cheering on r/Wallstreetbets, and this week, he offered a ringing endorsement of crypto as an alternative.
The world’s richest man quietly added “#bitcoin”…