GameStop (GME), the famous video game store that once went against Wall Street during a historic short squeeze, is in the news again—this time for investing in Bitcoin (BTC). With $4.77 billion in cash, GameStop’s move shows that they believe Bitcoin will be a good investment in the long run. But will this be the thing that pushes Bitcoin above $200,000?
Even though institutions want Bitcoin, and the Trump administration supports it, BTC has struggled to break through the $100,000 mark. The cryptocurrency market is having trouble, even though companies like MicroStrategy (MSTR), Metaplanet, and MARA Holdings are buying more Bitcoin. So, does GameStop’s interest in Bitcoin tip the scales in favor of a six-figure uptick?
Institutional Support Rises, Bitcoin Stagnates
Bitcoin has received considerable attention from institutions, and companies are starting to use the Bitcoin bank model that Michael Saylor’s company, MicroStrategy, began. Japanese business firm Metaplanet recently added Eric Trump to its advisory board to strengthen its Bitcoin strategy. At the same time, MARA Holdings has promised to hold all mined Bitcoin while making more investments through debt offers.
But even though Bitcoin is becoming more popular, its profits have been lower than gold’s, which is trading close to its all-time high of $3,057.
Regulations and TradFi Hesitation
Even though President Trump’s order on the U.S. Strategic Bitcoin Reserve hints at a way to buy Bitcoin without costing the government money, there are still big regulatory problems to solve. Some big banks, like JPMorgan, only act as middlemen or storage providers for cryptocurrency-related products. They don’t integrate Bitcoin into their services.
Traditional banks like Vanguard and BNY Mellon still make it hard for people to invest in Bitcoin, which slows down institutional growth. There are also problems in the Bitcoin derivatives market because most platforms choose to be based outside of the United States to avoid the strict rules that apply there.
Conclusion
The fact that GameStop bought Bitcoin is a strong sign that businesses will start using it, but it probably won’t cause the price to skyrocket to $200,000. Even though more institutions are getting involved, legal uncertainty, TradFi’s reluctance, and worries about the exchange are keeping BTC from growing exponentially.
