{"id":159553,"date":"2023-12-29T18:24:07","date_gmt":"2023-12-29T18:24:07","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=159553"},"modified":"2023-12-29T18:24:28","modified_gmt":"2023-12-29T18:24:28","slug":"coinbase-short-sellers-have-already-lost-more-than-4-billion-in-2023","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/coinbase-short-sellers-have-already-lost-more-than-4-billion-in-2023\/","title":{"rendered":"Coinbase short sellers have already lost more than $4 billion in 2023"},"content":{"rendered":"
Shorts<\/span><\/span><\/strong> are clamoring against <\/span>Coinbase<\/span><\/a><\/strong> as the leading cryptocurrency exchange enjoys a triumphant year in 2023.<\/span><\/span><\/p>\n <\/p>\n As <\/span><\/span>the company’s shares soared nearly 400%,<\/span><\/span><\/strong> short sellers <\/span><\/span>suffered<\/span><\/span><\/a> losses exceeding $4.2 billion,<\/span><\/span><\/strong> marking a considerable hit to those who bet on the downside.<\/span><\/span><\/p>\n Despite these astronomical losses, short investors <\/span><\/span>remain persistent in their negative bets.<\/span><\/span><\/strong><\/p>\n Short interest, which represents the number of Coinbase shares sold short, <\/span><\/span>is around $4 billion according to S3 Partners,<\/span><\/span><\/strong> a data analytics firm.<\/span><\/span><\/p>\n The short squeeze becomes increasingly likely<\/span><\/span><\/strong> as Coinbase’s stock price continues its rise, forcing short sellers <\/span><\/span>to buy shares to cover their positions.<\/span><\/span><\/strong><\/p>\n This bullish movement generated by the need to cover short positions <\/span><\/span>can further amplify the share price.<\/span><\/span><\/strong><\/p>\nThis persistence has fueled the possibility of a phenomenon known as a “short squeeze.”<\/span><\/span><\/h2>\n
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