Bitcoin’s huge rally has nuked $6B in shorts this year: S3 Partners
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Crypto industry short sellers have lost at least $6 billion trying to bet against publicly-traded crypto firms this year, due largely to Bitcoin’s (
Bitcoin’s 161% year-to-date rally has been a significant driver for crypto firm share prices, with Coinbase and MicroStrategy growing 312% and 285%, respectively, within the same time frame.
Bitcoin is trading for $43,964, at the time of writing, with a recent rally attributed to growing anticipation of a potential spot Bitcoin ETF approval in January.
Coinbase is the most unsuccessful trade for short sellers, with the firm’s almost 290% rally resulting in more than $3.5 billion in losses for short sellers. Following in a close second, MicroStrategy’s growth has seen short sellers lose more than $1.7 billion.
Despite growing losses, some short sellers have continued to add to their positions, betting that the current rally will soon run out of fuel. Since Bitcoin’s mid-September bounce, $697 million in new short positions have been added.
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