Bitcoin’s (BTC) bull season-like rise led to the liquidation of a total of $2.6 billion in short positions in crypto stocks.
The bull market created by the Bitcoin spot ETF news flow upset investors who predicted that the share prices of companies in the cryptocurrency sector would fall. According to a new report from data company S3 Partners, during the three-month period when Bitcoin experienced aggressive growth, $2.6 billion in short positions in the shares of crypto companies were liquidated.
Bitcoin (BTC) is in flight, companies are following!
Bitcoin (BTC) has risen from $25,152 to $44,500 since September 11. The rise of BTC brought about remarkable bull runs in altcoins. AVAX, LINK, TIA, ORDI and many altcoins had their own bull run.
The BTC rise also brought a spring mood to crypto companies. Coinbase shares have surged 51 percent in the past month alone, reaching over $140. On the other hand, the shares of MicroStrategy, which holds $6.6 billion worth of BTC, have witnessed an 82 percent increase since October.
Huge increases in the share prices of crypto companies have left stock short investors in a difficult situation. Investors who opened short positions in the shares of crypto companies such as Coinbase and MicroStrategy lost $2.656 billion in three months.
Coinbase stock accounted for 50 percent of the losses, while MicroStrategy accounted for 25 percent. According to data source S3, on Tuesday alone, $387 million in shorts in crypto companies’ stocks were liquidated.
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