GameStop shares could fall after a roller coaster ride, but Citron Research, led by Andrew Left, is exiting its short position in the video game retailer. In an article on X, Citron Research said he exited his short position, saying the platform now had “enough headroom” after its $4 billion liquidity injection.
Citron Research Exits GameStop Shorts, Compares GME to Coins Meme
However, even if Citron Research and Left agree to accept the loss, they seem to believe that even with billions, GameStop will not last, and that the advance was simply induced by hype.
Specifically, Citron Research recognized the irrationality of the market, citing Dogecoin’s enormous mega-valuation. At spot rates, CoinMarketCap data shows that Dogecoin is the most valuable meme coin, with a market cap of over $20 billion.
The researcher maintains a bearish outlook on GameStop, believing that its finances are deteriorating, a position that justified his initial short position.
Nonetheless, the potential for another rally driven by retail investors, as often seen in the same corners booms, prompted Citron to cut its losses. In 2021, Citron Research was forced to cut its losses when GameStop stock prices soared.
However, news of Citron Research exiting its short positions in GameStop caused GME stock prices to decline. Subsequently, some of the major crypto coins including PEPE, FLOKI, and ROAR fell in tandem.
Major Coins Plunge After GME Stock Falls
CoinMarketCap data watch that most meme coins are down double digits in the last week of trading. Roaring Kitty (ROAR) is down 30% in the previous week, and still in red on the last day, according to Coingecko data.
Interestingly, the meme piece is diving just days after the highly anticipated live stream from Keith Gill, also known as “Roaring Kitty,” failed to deliver any substantial news.
It remains to be seen whether the meme coins will recover after shrinking. Some analysts believe that the failure of the United States Securities and Exchange Commission (SEC) to take action against “Roaring Kitty” could catalyze demand, thereby reigniting a new altcoin season.
Under this, the meme coins will be reloaded, track higher and take their total market capitalization above the $60 billion mark. Due to this drop, the total market capitalization of memes decreased by more than $8 billion.
Featured image from Canva, chart from TradingView
