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Crypto stock short sellers’ profits rose about 126% this year: report


Crypto-share short sellers rose about 126% this year – S3 Partners

Crypto-share sellers achieved about 126 percent in brand-to-market gains this year, far exceeding those of other sectors, according to financial and analysis firm S3 Partners, amid a risk-off sentiment in the wider stock market.

The downturn in the world’s largest cryptocurrency, bitcoin, which fell to $ 21,229 from its record high of $ 69,000 hit in November, and other key players such as cryptocurrency exchange operator Coinbase Global paved the way for what was called becomes as the “crypto-winter”. ”.

Short sellers, betting on a stock’s decline, have an average short-term interest rate of $ 3 billion on the sector, according to S3.

In comparison, short-sellers’ profits in software and services as well as media and entertainment so far in 2022 were about 50 percent and 46 percent.

Shares in Coinbase and software developer Microstrategy Inc have fallen 78.6% and 69% so far this year. Short interest rates as a percentage of the company’s float stood at 15 percent for Coinbase and 27.5 percent for Microstrategy, according to S3.

“Shortening cryptocurrencies can still be a lucrative trade,” said Ihor Dusaniwsky and Matthew Unterman of S3 Partners. “Short sellers should not be blamed for downward price movements in the short term, but they can be an active participant in future rallies.”

So far this month, there have been $ 71 million worth of new short sales in cryptocurrencies, according to S3 Partners.

(Except for the headline, this story has not been edited by techlives staff and is being published from a syndicated stream.)

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