The Cryptocurrency Market is Soaring
The price of Bitcoin has surged more than 23% over the past month and over 160% year-to-date. This sharp price increase has helped cryptocurrency-related stocks recover amid renewed optimism.
Short Sellers are Losing Big
Short sellers have lost over $2.6 billion in less than three months and at least $6 billion this year while betting against the sector and cryptocurrency companies.
Big Gains from Cryptocurrency-related Stocks
Bitcoin’s price recovery has driven up the price of Nasdaq-listed cryptocurrency exchange Coinbase’s stock over 60% over the past month. MicroStrategy’s stock price also grew 26% in a month and 290% so far this year.
Short Sellers Feeling the Pressure
Short sellers who bet against these companies saw their total losses hit at least $6 billion. These short sellers ended up having to buy the stocks to cover their positions, pushing stock prices higher.
Short Sellers not Giving Up
However, some short sellers have added more bets against the current rally, hoping it will soon lose momentum. Since Bitcoin’s rebound in mid-September, short sellers have opened $697 million worth of new positions.
Hot Take: Cryptocurrency Stocks Surge as Bitcoin Price Rises
The recent surge in the price of Bitcoin has led to sharp gains in cryptocurrency-related stocks and significant losses for short sellers. As the price of Bitcoin and associated companies continues to rise, short sellers are feeling the pressure and are not giving up, hoping to capitalize on a potential loss of momentum in the near future.
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