Short sellers, known as short sellercryptocurrency and blockchain-related stocks have suffered heavy losses since November 6, after bitcoin reached record highs, fueled by optimism that US President-elect Donald Trump will implement a more favorable regulatory framework for the sector of cryptoassets.
Short trades in assets linked to the digital currency market are signaling new losses this Monday (11), as most shares in the sector jumped in the session. Among them, Coinbase, which soared almost 16%, following the increase in bitcoin prices.
Traders who bet against MicroStrategy, one of the companies most betting on bitcoin’s appreciation, lost more than US$1.2 billion between November 6 and 8, according to data analysis firm Ortex. The accumulated loss for the year is more than US$6 billion.
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Combined short-selling losses on Coinbase Global, involving cryptocurrency miners Riot Platforms and MARA Holdings, and blockchain farm operator Bitfarms were about $1.2 billion, as of the close on Nov. 8.
Bitcoin, the world’s largest cryptocurrency, rose to a record above US$82,000 this Monday (11), with a jump of almost 19% since November 6, when Donald Trump was elected US president.
“Bitcoin speculators are banking on a more lenient regulatory environment and have expectations that authorities could create a reserve cryptocurrency fund, helping to increase continued demand for digital currencies,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Investors who bet against the iShares Bitcoin Trust exchange-traded funds, the world’s largest ETF in terms of assets under management, have lost about $37 million since November 6.
Trump promised during the election campaign to support cryptocurrencies, proposing the formation of a national bitcoin stock and making the USA the “digital currency capital of the planet”.
