Bitcoin (BTC) has been on a tear, skyrocketing nearly 23% in the past month and a whopping 160+% YTD. This meteoric rise has left cryptocurrency-related stocks basking in the glow of renewed optimism. 😃
But here’s where the plot thickens: according to Bloomberg as these crypto stocks were busy partying, short sellers watched their fortunes nosedive. Short sellers are down over $2.6 billion in under three months, almost half of the $6 billion in losses they’ve suffered in 2023. Ouch!
Take $COIN, for instance. This Nasdaq-listed crypto exchange saw its stock soar over 60% in the past month, now sitting pretty with a 270% gain year-to-date. Then there’s $MSTR, strutting its stuff with a 26% monthly and 290% annual stock price increase. Fun fact: MicroStrategy is the largest publicly traded Bitcoin holder, boasting a stash of 174,530 BTC worth over a cool $7.6 billion.
Coinbase’s stock has been particularly brutal for the shorts, costing them over $3.5 billion in losses. MicroStrategy’s short sellers fared no better, losing around $1.7 billion.
And if you’ve already lost billions, why not double down? $697 million worth of new positions have opened against the rally since Bitcoin’s rebound in mid-September. 🤦♂️