Bitcoin Slips Back Even as GameStop News Sparks Optimism

Bitcoin Slips Despite GameStop’s Bitcoin Treasury Move

Not everyone is convinced that GameStop’s decision to invest in bitcoin is a bullish signal.

After briefly approaching $89,000 following GameStop’s announcement on Tuesday, bitcoin (BTC) has reversed course, sliding lower during U.S. trading hours on Wednesday.

By midday on the East Coast, BTC had dropped about 3% from its overnight peak, trading around $86,500. Broader crypto markets also declined, with the CoinDesk 20 Index down 1.9% over the past 24 hours. Major altcoins like ether (ETH), solana (SOL), and AAVE saw losses of 3% to 4%.

The pullback coincided with a dip in U.S. equities, where the S&P 500 and Nasdaq dropped 0.8% and 1.6%, respectively, wiping out most of their gains from earlier in the week.

Macro Headwinds Weigh on Sentiment

Market jitters were fueled by renewed concerns over the U.S. debt ceiling. The Congressional Budget Office warned that the federal government could run out of money as early as August if the debt limit isn’t raised. Meanwhile, impending U.S. tariffs set to take effect on April 2 added further uncertainty.

“Investors are navigating a landscape filled with economic and policy unknowns,” said analysts at hedge fund QCP in a Telegram update. “Without clarity on these factors, we anticipate continued choppy price action.”

GameStop’s Bitcoin Bet: A Sign of Strength or Desperation?

Despite GameStop’s move into bitcoin, traders remain skeptical about its long-term impact on the market.

“GameStop adopting bitcoin as a corporate treasury strategy doesn’t necessarily signal strength—it could indicate a desperate attempt to stay relevant,” said analyst James Check, reiterating a perspective he shared last year.

He compared GameStop’s approach to that of struggling bitcoin mining firms that stockpiled BTC beyond what they produced—moves that ultimately added selling pressure to the market.

“Just a few months ago, I wasn’t sure where the next wave of excess sell pressure would come from,” Check noted. “Now, it’s becoming clearer. Give it a few more months, and we may see another case of unsustainable bitcoin accumulation unraveling.”