Friday, December 8, 2023

Market Watch June 17: Short sellers capitalize on crypto market’s downtrend.

After a brief rally yesterday, Bitcoin has once again slipped to the lows of the $20,000 mark to the delight of short-sellers. On Monday, short-sellers bet more than $631 million on the continued descent of top-six crypto stocks. This accounted for 39% of their collective trade volume for the day. Analysts say short-sellers have been waiting for the opening of equity markets to capitalize on the chaos.

Crypto firms are bracing for a further dip. MicroStrategy’s shares dropped down to 25% as it saw 77% more short-selling than usual at the beginning of the week. Signature Bank recorded an even bigger short surge. Short sellers placed about $53 million in bets against the New York-based financial institute. This was 82% above its yearly average. Signature Bank put off 20%, despite it having “virtually zero credit risk”. Signature Bank’s digital asset balance sheet is entirely based on deposits. Another crypto firm, Rival Silvergate saw 14% more shorts (about $24 million) than average. As of March 31, it oversaw about $15.8 billion in assets under management (AUM). Rival Silvergate spent $182 million in February to acquire assets and technology which was intended to power Meta’s failed stablecoin offering Diem.

Oisin Maher, co-founder of quantX, says pure Bitcoin plays have slightly declined in short interest, but broader crypto plays have jumped this month. An example is Voyager Digital’s US-listed equity. It spiked about 600% in June, and Galaxy Digital has been steadily growing as well. More bets, as per FINRA data, were on crypto’s demise last month. It shows that more than $11 billion worth of shorts were opened against crypto firms like Coinbase, Signature, MicroStrategy, Marathon, Silvergate, and Riot.

At the time of writing this article, Bitcoin was trading at $20,618. It has been down by 8.23% in the last 24 hours – losing all the gains it had made yesterday. Ethereum is close to touching the $1,000 mark. It lost 10.63% of its value and is changing hands at $1,091.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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