Short sellers bet $11 billion that crypto stock rally won’t last

economictimes.indiatimes.com:

Short sellers are still betting billions of dollars that the rally in cryptocurrency-linked stocks fueled by a surge in Bitcoin will eventually end.

Total short interest, or the amount that contrarian traders have pledged against crypto stocks, has increased to nearly $11 billion this year, according to a report from S3 Partners LLC on Monday. More than 80% of total short interest in the sector are bets against MicroStrategy Inc. and Coinbase Global Inc.

Paper losses for the group have mounted to nearly $6 billion as a more than 65% year-to-date run for Bitcoin has lifted the rest of the sector. Still, the cohort is doubling down on such positions.

“Crypto stock short sellers have been selling into a rallying market – either looking for a pullback in the Bitcoin rally or using the short positions as a hedge versus actual Bitcoin holdings,” Ihor Dusaniwsky, managing director of predictive analytics at S3, said in the report.

Did you Know?

The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.

Over the last 30 days, traders betting against crypto-linked stocks have increased their positions, especially in