Short sellers bet against crypto stock rally

Crypto hopefuls are hunkering down and standing vindicated as the value of Bitcoin is soaring to unprecedented highs – yet short sellers are equally determined

Short sellers think that the cryptocurrency-linked stocks that are now riding high on the back of Bitcoin valuation will not last, with as much as $11 billion wagered against a future positive trend.

The number comes from an S3 Partners LLC report published earlier this week with 80% of the total short interest in the industry now going against Coinbase Global Inc. and MicroStrategy Inc. which have seen their stock value increase because of the recent Bitcoin rally that saw the cryptocurrency hit an all-time high above $70,000.

S3 managing director of predictive analytics Ihor Dusaniwsky was happy to clarify on the ongoing trend and explained that crypto stock short sellers have been confident that the rally will eventually end, and it will deliver a good value when it does if investors are shortening the crypto stock.

Of course, this is not to say that short sellers are going to be correct. The crypto community is driven by consumer sentiment that is usually rooted in an “against-all-odds” attitude which could galvanize people into supporting Bitcoin on the way up and not sell, creating all sorts of trouble for over-confident short sellers.

If this is indeed the case, short sellers would have to buy back the stock they are shortening to exit their positions and cut their losses. Betting on the price of cryptocurrencies, and Bitcoin specifically, has become a viable gambling market supported by numerous platforms in and around the industry.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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