Keith Gill Returns: Will the 2021 Meme Bull Run Repeat?

Author: Tom Mitchelhill, CoinTelegraph; Compiler: Deng Tong, Golden Finance

Keith Gill is widely regarded as the instigator of the 2021 GameStop short squeeze, and his sudden and unexpected return has raised a question among speculators: Will we usher in GameStop 2.0?

Many are hopeful, but at least one analyst is skeptical.

Gill was at the center of the GameStop saga during the pandemic, with Reddit traders flipping the tables on hedge funds that had been shorting physical game stores that they believed were about to go bankrupt -which ultimately caused the price of GME to surge by more than 1,000% in less than a month.

Some also believe that the GameStop short squeeze set the stage for a sharp rise in the prices of meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) after retail investors turned their attention elsewhere.

Gill disappeared from social media on June 19, 2021, but returned on May 13 after a nearly three-year hiatus, posting a typically cryptic meme of a gamer sitting in a chair to announce his return.

In the 24 hours since Gill returned to X, GameStop shares rose 111%, while DOGE and SHIB rose 6.2% and 5.4%, respectively, over the same period.

Gill disappeared from social media on June 19, 2021, but returned on May 13 after a nearly three-year hiatus, posting a typically cryptic meme of a gamer sitting in a chair to announce his return.

In the 24 hours since Gill returned to X, GameStop shares rose 111%, while DOGE and SHIB rose 6.2% and 5.4%, respectively, over the same period.

Comparison of price action for GME, DOGE and SHIB since May 5. Source: TradingView

Now, cryptocurrency enthusiasts are hoping that Gill’s return will spark a similar retail frenzy.

One analyst isn’t optimistic

However, eToro market analyst Josh Gilbert noted that it might not be so easy this time around.

“I think it will certainly spark some short-term strength in these assets, but it’s hard to see any long-term prospects,” he said.

In addition, Gilbert noted that the size of outstanding shorts in assets like GameStop is much smaller than it was in 2021, meaning the “size of the rally” is likely to be smaller as well.

“The environment right now is not comparable to 2021, when interest rates were at rock-bottom levels, governments were providing fiscal stimulus around the world, and there was virtually no inflation in major economies.”

“Interest rates in the U.S. are at 5.5% and there’s a global cost of living crisis going on. In short, consumers are unlikely to be in the same position they were in 2021, and that has a huge impact on financial decisions,” Gilbert added.

Crypto enthusiasts offer a simpler argument for their optimism.

Anonymous trader Travis said in reference to the recent integration between Robinhood and decentralized exchange UniSwap that it is reasonable to expect a new wave of GameStop crypto enthusiasts to start buying memecoin and other cryptocurrencies through the app.

"Just a reminder that you can now trade memecoin on Robinhood. You don't think the Roaring Kitty army will buy this stuff?"

However, Gilbert said that among many other factors, most investors now understand how speculative rallies end and are more likely to take a more cautious approach.

Source: Trader Travis

“I think we’re in a completely different situation than we were in 2021, which makes me think a similar rally is unlikely,” he said.

“That being said, WallStreetBets’ 14.5 million users have shown over the past few years that anything is possible.”

Some GameStop-related meme coins, including a token called GameStop (GME) (which has no formal relationship with the company) have surged amid the drama. According to Birdeye data, GME memecoin soared more than 3,650% in a single day.

In news reports, a GameStop-themed meme coin soared. Source: Birdeye