Bitcoin surge triggers billions in losses for crypto short traders after Trump win
Bitcoin surged to record highs, on optimism US President-elect Donald Trump would implement a more favourable regulatory framework
SHORT sellers of cryptocurrency and blockchain-related stocks have suffered heavy losses since Nov 6, after bitcoin surged to record highs, on optimism US President-elect Donald Trump would implement a more favourable regulatory framework.
Crypto short trades looked set for a further hammering on Monday (Nov 11) as most cryptocurrency-related stocks jumped in US premarket trading. Among them, Coinbase was last up close to 16 per cent, tracking the surge in bitcoin prices.
Traders who bet against MicroStrategy, one of bitcoin’s biggest corporate backers, lost more than US$1.2 billion between Nov 6 and Nov 8, according to data analytics firm Ortex, and are down more than US$6 billion so far this year.
Combined short-selling losses on crypto-exchange operator Coinbase Global, crypto miners Riot Platforms and MARA Holdings, and blockchain-farm operator Bitfarms were about US$1.2 billion, as of the Nov 8 close.
Bitcoin, the world’s largest cryptocurrency, soared to a record high above US$82,000 on Monday, with a nearly 19 per cent jump since Nov 6, when Republican candidate Trump reclaimed the presidency after defeating Vice President Kamala Harris.
“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, the world’s largest ETF in terms of assets under management, lost close to US$37 million since Nov 6.
Trump embraced digital assets during his campaign, promising to accumulate a national stockpile of bitcoin and make the United States the “crypto capital of the planet”. REUTERS
Share with us your feedback on BT's products and services
