Today, AMC and GameStop shares are all the rage: AMC jumped over 300% at the open. GameStop made impressive movements as well, more than doubling on Wednesday and rising 110%. At the start of the year, AMC stock was a mere $2, but it is now over $16. GameStop, however, was only about $18 at the start of 2021 and achieved a high of $370 today. Both companies are up based on an organized attack from Reddit’s Wall Street Bets. This new interest in stocks does not reinvigorate gold and silver prices. In fact, gold and silver prices were both down at the start today, and they struggled to rise back up.

To briefly explain the current tumultuous trading environment, The Verge describes r/WallStreetBets as “a chaotic, meme-fueled effort to create an organized short squeeze, and force traditional hedge funds into losing millions of dollars on their bets against struggling companies.” Although a chaotic mission, this strategy appears to be working. Just take a look at the charts above. It seems that investors are out with a vengeance, appropriately using apps like Robinhood, to quickly turn a profit.

The Reddit group is a large-scale effort to buy stock, celebrating the frustration of traditional brokers and the effect it yields on the stock price. Traders who once made bets that GameStop will drop are currently at the end of this joke, inspiring more investors to join in and push the price higher. Investors who once bet against the stock have to retract their positions.

What is On the Horizon for Cryptocurrencies and Gold and Silver Prices?

Additionally, at this time, investors are afraid of inflation, particularly owing to Biden’s stimulus plan that might offer several stimulus checks to targeted groups. This and loose fiscal policies are why Bitcoin and other cryptocurrencies are all the rage at the moment. When the economy can reopen, which might be a gradual process, people are worried about money flooding into the market and the dollar becoming worthless. Therefore, in addition to buying stocks, people are turning to cryptocurrency.

Those who fear inflation seem to be placing a lot of trust in digital currency. By doing this, they forget altogether about diversifying with precious metals. This is why gold and silver prices have been struggling to find support lately.

Looking Ahead: MicroStrategy February Bitcoin Conference

On the other hand, Bitcoin and Ethereum are mostly stable for now. This calm might not last too long though: analysts foresee a massive Bitcoin rally in February. This is owing to the MicroStrategy Bitcoin conference that starts on February 3. Bitcoin industry giants like Crypto Exchanges and Binance will be in attendance. During this conference, Michael Saylor will speak on his company’s strategy with cryptocurrency and how it made its profits. Saylor said:

“We’re going to publish our playbook. All of our accounting guidance, our legal guidance, all the work we did over the course of months in order to get ready to do this as a publicly traded company. We’re going to open source it, make it available to everybody with the thought of saving each of them millions of dollars and weeks if not months in order to make this an easier transition.”

This five-session conference is aimed at major investors and companies who are interested in diversifying into cryptocurrencies. This might result in a massive fiat dump into Bitcoin, and in turn, this could negatively impact gold and silver prices. As of this moment, Bitcoin and Ethereum, two of the most popular cryptos, reached a balancing point. Bitcoin spiked to just over $40,000 earlier this month. After that, it fell to the low $30,000 level where it remains at this moment. Ethereum also rose from only about $700 at the start of the year to over $1,300 as of this writing. Despite a few drops, it remains above the $1,100 level for most of the month.

If you are at all interested in Bitcoin and Ethereum, or if you already own, you might consider watching your profits. Then, you can add variety to your investments with gold and silver, which move with much more stability in comparison to cryptocurrencies. Owning a safe haven hedge is especially important if you are hopping on the GameStop/AMC bandwagon!

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