Bitcoin’s huge rally has nuked $6B in shorts this year: S3 Partners
Short sellers have lost more than $6 billion trying to bet against crypto stocks in 2023.
Crypto industry short sellers have lost at least $6 billion trying to bet against publicly-traded crypto firms this year, due largely to Bitcoin’s (BTC) outsized rally since Jan. 1.
According to a Dec. 5 report from research firm S3 partners, traders who bet against publicly traded crypto firms such as Coinbase, MicroStrategy, and Marathon Digital are now nursing $6.05 billion in on-paper losses.
The bulk of the losses for short sellers have been concentrated in the last three months. After Bitcoin fell to a quarterly low of $25,133 on Sept. 11, short sellers increased their exposure to what they thought was an overbought sector.
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