{"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

This persistence has fueled the possibility of a phenomenon known as a “short squeeze.”<\/span><\/span><\/h2>\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>\n

\"Coinbase<\/p>\n

Coinbase’s exponential growth <\/span><\/span>has been driven by various factors.<\/span><\/span><\/strong><\/p>\n

The resurgence of <\/span><\/span>interest in cryptocurrencies<\/span><\/span><\/strong>, along with the <\/span><\/span>expectation of the approval of a <\/span><\/span>Bitcoin<\/span><\/span><\/a><\/strong> ETF, has significantly influenced the company’s valuation.<\/span><\/span><\/p>\n

Coinbase’s participation in <\/span><\/span>shared custodian agreements and its role as a<\/span><\/span><\/strong> preferred custodian have also been key drivers of its success in the market.<\/span><\/span><\/p>\n

Despite this winning streak, some prominent investors, such as Jim Chanos, <\/span><\/span>maintain their bearish stance towards Coinbase.<\/span><\/span><\/strong><\/p>\n

Chanos, known for his skeptical and previously successful stance against Enron, <\/span><\/span>remained short Coinbase since 2022<\/span><\/span><\/strong>, anticipating a devaluation.<\/span><\/span><\/p>\n

In this bullish trend scenario, <\/span><\/span>the market faces uncertainty about how the situation will develop in 2024.<\/span><\/span><\/strong><\/p>\n

Short bets <\/span><\/span>persist despite huge losses<\/span><\/span><\/strong>, leaving in the air the possibility of a shocking short squeeze that <\/span><\/span>could trigger an even bigger rise in Coinbase’s stock price<\/span><\/span><\/strong> in the near future.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Shorts are clamoring against Coinbase as the leading cryptocurrency exchange enjoys a triumphant year in 2023.<\/p>\n","protected":false},"author":33,"featured_media":159561,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4642,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/159553"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=159553"}],"version-history":[{"count":4,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/159553\/revisions"}],"predecessor-version":[{"id":159564,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/159553\/revisions\/159564"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/159561"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=159553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=159553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=159553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}