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
Rob from the poor and give to the rich? Robinhood prompts furious backlash after restricting trades
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.
The SEC is now looking into Robinhood’s handling of GameStop trading, with Congress announcing hearings into the practice of short selling.
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.”
Bitcoin soars by $5,000 in minutes — BTC hits $38,000 after Elon Musk’s ‘Dogecoin treatment’
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” to his Twitter bio… with BTC surging by more than $5,000 within minutes as a result. This helped turn the fortunes of the world’s biggest cryptocurrency around, as it had been at peril of losing support at $30,000.
Alas, the price boost was short-lived. In the 24 hours that followed, BTC headed back toward $33,000 — leaving $34,500 as a significant resistance zone that needs to be broken if there’s any chance of sustaining bullish momentum.
Cointelegraph Markets analyst Michaël van de Poppe says the critical level to watch now is the $30,000 region. “If that fails to sustain support (after numerous tests already), I expect a drop toward $25,000 and the 21-Week MA,” he wrote.
Dogecoin ranks among top 10 crypto assets for first time since 2015
And another symptom of this week’s mayhem saw Dogecoin surge 900% in less than two days. The meme coin was well and truly unleashed, sprinting from $0.0078 to $0.078 and quadrupling its previous all-time high.
DOGE’s sudden parabola…