United States: Those who have borrowed stock and sold them, short sellers of the cryptocurrency and blockchain-related stocks, lost a significant amount of money after Trump’s election victory on November 6, buoyed by the record high bitcoin prices.
Crypto short trades appeared poised to take another beating on Monday as many cryptocurrency-focused equities advanced in U.S. premarket trading. Among them, Coinbase’s share lasted up close to 16%, rising in tandem with higher bitcoin prices, as reported by Reuters.
Major Losses for Crypto Short Sellers
Short sellers – investors who sell shares of security expecting that the price will drop – using one of MicroStrategy’s bitcoin opponents plunged by over $1.2 billion between November 6 and November 8, as recorded by Ortex, a data analytics firm, who added that they have lost more than $6 billion in the year to date.
Total short-selling losses on Coinbase Global (COIN.O), Riot Platforms (RIOT.O), MARA Holdings (MARA.O), and Bitfarms were about $1.2 billion up to November 8 close.
Market Speculation
Bitcoin, the largest digital currency by market value, hit more than $82,000 on Monday as it gained almost 19% since November 6, when presidential candidate Trump won the Vice President Kamala Harris election.
ETF Short Sellers Hit with Additional Losses
“Bitcoin speculators are betting on a more clement regulatory environment and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Short sellers targeting iShares Bitcoin Trust exchange-traded funds(IBIT.O), the largest ETF in the world according to AUM, lost nearly $37 million since Nov. 6, as reported by Reuters.
Pro-Crypto Stance Fuels Optimism
Trump supported digital assets during his campaign and had said he would buy more bitcoins for the US and make this country ‘the crypto capital of the planet.’