November 11 (Reuters) – Short sellers in the cryptocurrency and blockchain sectors have faced substantial losses since November 6, coinciding with Bitcoin’s climb to record levels. This surge is fueled by expectations of a more favorable regulatory landscape under U.S. President-elect Donald Trump.
Crypto short trades appeared poised for further losses on Monday, with most related stocks experiencing gains in U.S. premarket trading. Coinbase, for instance, saw an increase of nearly 16%, mirroring the rise in Bitcoin prices.
According to data analytics firm Ortex, traders who bet against MicroStrategy (MSTR.O), one of Bitcoin’s largest corporate backers, lost over $1.2 billion between November 6 and November 8 and are down more than $6 billion year-to-date.
Combined short-selling losses for crypto-exchange operator Coinbase Global (COIN.O), crypto miners Riot Platforms (RIOT.O) and MARA Holdings (MARA.O), and blockchain-farm operator Bitfarms amounted to approximately $1.2 billion as of the November 8 close.
Bitcoin, the leading cryptocurrency globally, reached an all-time high exceeding $82,000 on Monday, representing a nearly 19% gain since November 6, when Republican candidate Trump secured the presidency.
“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.
Investors betting against iShares Bitcoin Trust exchange-traded funds (IBIT.O), the world’s largest ETF by assets, lost close to $37 million since November 6.
Trump voiced his support for digital assets during his campaign, vowing to amass a national stockpile of Bitcoin and position the U.S. as the “crypto capital of the planet.”
