MicroStrategy Takes a $2 Bln Hit With Highest Short Losses Since March
Highlights
- MicroStrategy has been leading all these losses in crypto short selling the past week as well.
- Using the short-selling approach, traders bet on the potential decline of a financial instrument.
- According to analysis, the companies in the industry most vulnerable to squeezes are MicroStrategy, Coinbase, and Cleanspark Inc.
Since March, short sellers who have bet against MicroStrategy have lost $1.92 billion. Short selling in the crypto markets has risen in the past few weeks. MicroStrategy has been leading all these losses in crypto short selling the past week as well.
MicroStrategy Leads Short Selling Losses
According to Reuters, data from S3 Partners shows that since March, short sellers betting against MicroStrategy, have lost $1.92 billion, underscoring the blow from a rise that has helped the company beat bitcoin. The Securities and Exchange Commission (SEC) approved multiple spot bitcoin exchange-traded funds (ETFs) in January, bringing the once-unpopular asset class closer to the mainstream.
Using the short-selling approach, traders bet on the potential decline of a financial instrument. Short sellers speculate on and profit from a decline in the value of an asset. Investors and portfolio managers may utilize short selling as a hedge against the downside risk of a long position, or traders may use it for speculation.
Read Also: OpenAI, Mistral, And Google Launches Updated AI Models
Crypto Short Selling Losses Last Week
For cryptocurrency stocks, the average crowded score—a gauge of how closely spaced out short sellers are in stock—is 57.34, far higher than the street average of 32.41. The possibility for a quick squeeze is indicated by the squeeze scores, which average 78.69, significantly higher than the street average of 34.41. According to analysis, the companies in the industry most vulnerable to squeezes are MicroStrategy, Coinbase, and Cleanspark Inc.
The overall amount of short interest in the industry has grown by $3.67 billion to $10.71 billion in 2024. This suggests that short sellers are still skeptical or are hedging strategically. The sector’s total short interest has climbed by $4.50 billion in the previous 30 days, indicating that the recent gain has prompted increased short selling.
Read Also: Bitcoin Mining Hardware Firm Auradine Raises $80 Million Amid Halving Demand
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration
- SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple
- Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
