Meme coins’ selloff continues after a 50% drop in GameStop

Top Meme Coins: Bitcoin is going through a negative trend along with a bloodbath of meme stocks.

Over the last 24 hours, Bitcoin has been traded at -3%, Ether slumped by 3.7% and Solana by 3.7%. The pressure on popular meme coins has also extended into the current period of selling pressure.

Dogecoin plunged by 2.4%, Shiba Inu fell almost 4%, and Pepe dropped by 1% within the last twenty-four hours.

FLOKI was down by 7.6% while Brett was down more than nine percent on Tuesday after notching up strong gains recently.

The original meme stock, GameStop, has fallen over fifty percent in two days leading to a sell-off in meme coins. Typically, GME itself is one of many that tend to mimic GameStop’s moves due to its status as an original meme stock since it became popular among retail traders earlier this year.

Data from Coin Gecko shows that roaring Kitty and some cat-themed tokens linked to GameStop have declined around ten percent on average since rising alongside the company’s share price previously.

READ MORE:- Bitcoin (BTC) Price Eyes $70,000 As US Feds Leaves Rate Unchanged

GME reports weak Q1 earnings & Keith Gill disappoints

Keith Gill, known as @RoaringKitty, has confirmed a substantial investment in GameStop and said that he still believed that its troubled management team had the power to turn it around. However, his comments did not save the company’s shares from sinking.

His appearance was hours before GameStop’s quarterly results showed that such a turnaround still had some way to go.

GameStop announced sales worth $881.8 million representing a 15% YoY decline from $1.237 billion the prior year, worse than Wall Street expectations of $995.3 million (Gara). 

The video game retailer also reported a loss per share of $0.12 compared with consensus estimates of -$0.09 according to Zacks (Gara). The retailer’s core business has been in decline, with store numbers on the decline in recent quarters (Dawson).

Additionally, apart from the weak earnings report; GameStop indicated that they will sell 75 million shares having made about 933 million dollars from selling 45 million shares five days ago which did not augur well with GameStop shareholders.

Meme stock volatility continues

Meme stock GS here went nuts again starting late May following Keith Gill’s return to social media. You know this guy helped spark off the short squeeze rally in this same security three years back in February hoping for another catalyst this time around.

At the end of May, the price of GameStop went up significantly from $20 to $64 only for it to return to $20 by the close of the month. This was followed by a surge in share price to $48 the previous week and then dropping back to the current level of $25. Volatility is also likely to increase in the behavior of GameStop as well as meme coins.