Crypto Meltdown 2024: Historical Events Hints at Major Crises For Tether and Ethereum

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Keith Gill, the investor known for sparking the meme stock rally during the pandemic, made a sensational return to social media after three years, igniting a surge in GameStop (GME) and AMC Entertainment (AMC) shares. His reappearance on social platforms, particularly on X, was marked by a post featuring a meme suggesting he is “getting serious,” signaling a revival of interest among retail investors.

The post caused a frenzy among retail investors, with comments like “he’s back,” “game on,” and “just in time for the memecoin supercycle,” referring to the recent surge in smaller cryptocurrencies.

Market Response and Volatility

Following Keith Gill’s post, GameStop’s (GME) stock skyrocketed by approximately 74.5% on Monday. Due to unprecedented volatility, the New York Stock Exchange (NYSE) had to temporarily halt trading on GME stock multiple times within the first hour of trade. 

Similarly, theater chain AMC Entertainment (AMC) saw its stock price surge 78.4% on the same day.

Historical Events To Repeat Again

Once again in 2024, AMC and GameStop have re-entered the spotlight, but this time the focus is shifting towards major players like Tether and Ethereum within the cryptocurrency sphere.

In the first half of 2022, the cryptocurrency LUNA collapsed, followed by a similar event affecting FTX in the latter half of the year. The subsequent collapse of Signature Bank in 2023 added to the narrative. These events reflect the interconnected nature of traditional markets and the crypto ecosystem.

Shift to Tether and Ethereum

Once again in 2024, AMC and GameStop are back in focus, but this time discussions are shifting towards larger players like Tether and Ethereum within the crypto sphere. 

Meanwhile, the recent tensions in the crypto market have raised doubts about Tether’s stability and transparency, despite its reputation as a reliable stablecoin. Additionally, the emergence of new stablecoins poses tough competition to Tether (USDT).

Ethereum is also facing scrutiny regarding its classification as a security or commodity by the U.S. Securities and Exchange Commission (SEC). There is anticipation around the SEC’s decision to classify ether (ETH), Ethereum’s native token.

Investors are awaiting the SEC’s approval of spot ether exchange-traded funds (ETFs) this month. If rejected, Ethereum’s price could significantly decline, impacting overall market sentiment.