Bitcoin's Bull Run Cripples Short Stock Sellers, Drains $2.6B From Their Pockets
Portfolio Pulse from Mehab Qureshi
Bitcoin's recent bull run has resulted in significant losses for crypto short sellers, totaling $2.6 billion in less than three months. The surge in Bitcoin's value, which has increased by 75% since September 11, has positively impacted the stock prices of crypto-related companies like Coinbase and MicroStrategy. Coinbase's stock rose by 51%, while MicroStrategy's stock jumped by 82%. Short sellers have faced over $6 billion in losses since January, with a single-day loss of $387 million recently. The optimism around a potential SEC-approved Bitcoin ETF is driving the surge.
December 07, 2023 | 7:21 am
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Coinbase's stock has risen by 51% to $143.63, reflecting Bitcoin's price increase. Short sellers have incurred significant losses, particularly from shorting Coinbase stocks, which account for over half of the $2.6 billion total.
Coinbase's direct correlation with the cryptocurrency market, especially Bitcoin, has led to its stock price increase. The article indicates that short sellers have been particularly affected by the rise in Coinbase's stock, suggesting a positive short-term impact on COIN's stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
MicroStrategy's stock has surged by 82% since October to $568.88, propelled by its significant Bitcoin holdings. Short sellers have faced substantial losses, with about 25% of the $2.6 billion coming from shorting MicroStrategy stocks.
MicroStrategy's substantial investment in Bitcoin has resulted in its stock price mirroring Bitcoin's performance. The article highlights the losses short sellers have taken on MSTR stock, indicating a positive short-term impact on its stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85