Bitcoin’s Rally Burns $6 Billion for Short Sellers
- Coinbase jump accounts for more than half of losses in 2023
- Rising prices may squeeze shorts and lead to covering: S3
Bitcoin’s more than 165% jump is driving the gains in crypto stocks, which are highly linked to the price of the digital asset.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Bitcoin’s blistering rally in 2023 has made betting against cryptocurrency company stocks a losing bet for short sellers.
Traders betting on declines in crypto-related companies such as Coinbase Global Inc., MicroStrategy Inc. and Marathon Digital Holdings Inc. have accumulated paper losses of $6 billion so far this year, according to data from S3 Partners LLC.