Almost $11 billion has been wagered by short sellers who believe the recent cryptocurrency upsurge in valuation will not last. Even after Bitcoin’s recent rise.
A report from the S3 Partners LLC this week confirmed the numbers. 80% of the total short interest is backing against the likes of Coinbase Global Inc. and MicroStrategy Inc.
Cryptocurrency reached an all-time high which naturally, saw Coinbase and Microstrategy’s stock rise. However, short sellers are still not convinced for the long run.
Ihor Dusaniwsky, who is the director of predictive analytics at S3 Partners, explained that crypto stock short sellers are confident that the rally will eventually end.
If and when it does, it will deliver a good value if investors are shortening the crypto stock. However, short sellers aren’t always going to be correct.
The crypto industry can prove to be volatile and unpredictable. If investors in Bitcoin ride the wave on the way up and don’t sell, short sellers could entertain trouble.
Crypto Stock Rally
The recent cryptocurrency stock rally has proven to be an exciting time in the industry. Bitcoin’s value surged past $70,000 on Monday (March 25) during U.S. trading hours. BTC gained more than 7% in 24 hours.
Ethereum’s ether was up 6% in the same time frame. Tokens for major layer-1 blockchains such as Solana and Avalanche increased by more than 10% as well.
Overall, nearly all digital assets are in the green with the crypto rally likely to continue for the foreseeable future. Bitcoin could now target a new all-time high.
A figure of $83,000 is being touted by industry experts. Historically, Bitcoin generally performs well during U.S. election years – which 2024 is.
In the past, Bitcoin has advanced 100%-200% so this year certainly offers plenty of potential and promise. Founder of 10x, Markus Thielen, believes that a price of $102,000 is not beyond the realms of possibility.
Read Next: The 15 Best Bitcoin Gambling Sites 2024 With Crypto Gambling Bonuses.
