Bitcoin rally batters short sellers

Short sellers betting against crypto stocks are nursing hefty losses as Bitcoin surges past $70,000.

Bitcoin rally batters short sellers
Bitcoin Short Sellers Feeling The Pinch

Crypto stock short sellers have incurred mark-to-market losses of $1.9 billion so far this year, according to data from S3 Partners.

The staggering losses come as Bitcoin, the largest cryptocurrency, has rallied 67% year-to-date, propelled by booming demand for spot Bitcoin ETFs and hopes of impending Fed rate cuts.

The short squeeze intensifies as bearish traders continue selling into the Bitcoin rally, either expecting a pullback or hedging against actual Bitcoin holdings.

Gold steadies as traders await US inflation data, Fed speak
The precious metal traded in a tight range on Wednesday, as gains from an overnight rebound were capped by a resilient dollar.

Total short interest in crypto stocks ballooned by $4.5 billion to $10.7 billion over the past month, driven by rising share prices and fresh short selling, especially in MicroStrategy.

"Unprofitable shorts like MicroStrategy, Coinbase, and CleanSpark face a strong squeeze possibility," warned Ihor Dusaniwsky of S3 Partners.

Early Wednesday, Bitcoin traded at $69,810, down 0.2%, while Ethereum and XRP also slipped lower.

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