Fatfish Group Ltd (ASX: FFG) shares are plummeting today with no news out from the company. At the time of writing, the Fatfish share price has plummeted 21.15% to 20.5 cents.
It is, however, important to view today's falls within the context of the 195% gain the tech venture investment firm notched up yesterday.
Why has Fatfish been so volatile lately?
There are a few recent news items that have drawn focus to the Fatfish share price recently. Firstly, on Monday iCandy Interactive Ltd (ASX: ICI) announced its intentions of selling iCandy digital for $4.8 million to Rightbridge Ventures. Rightbridge is a subsidiary of Abelco, and Abelco is a subsidiary of Fatfish.
This news item, in reality, has no material impact on Fatfish, as it holds a stake in both iCandy and Abelco. Nevertheless, the announcement sent the Fatfish share price soaring.
Secondly, Fatfish appears to have entered the buy now, pay later (BNPL) space through its 78.7% ownership of Smartfunding. The newly developed BNPL offering by Smartfunding is expected to launch on 18 February in South-East Asia.
Lastly, Fatfish has exposure to Bitcoin (CRYPTO: BTC) through the Sweden-based Abelco. Given the momentous rally in the price of the digital currency, the market is all eyes on the speculative potential.
Perfect storm for the Fatfish share price
When you combine the hype of the BNPL sector with the immense speculation surrounding Bitcoin, the rocket ship emoji starts getting plastered all over it. The speculation reaches far and wide with huge inflows of interest. Today alone, Fatfish shares have seen five times their monthly average trading volume in a single day.
The question is whether today marks a reprieve as speculators take profit before pushing the Fatfish share price further upwards. Or whether it is the beginning of a longer downward trend. The answer to this may be largely influenced by how Smartfunding's roll-out evolves and where the Bitcoin price goes from here.
The Fatfish share price has returned an insane 2400% to shareholders over the last 12 months. Furthermore, the returns delivered by Fatfish have even outperformed Bitcoin itself.