While the rise in Bitcoin has recently driven the stocks of many crypto companies, especially MicroStrategy and Coinbase, “short” traders who invest in the decline of stocks strongly believe that such rallies will end.

In the news of Bloomberg, one of the US media, based on the research company S3 data, it was stated that the amount of money invested by short traders in the decline of stocks reached $11 billion. It is also noteworthy that 80% of this figure is for MicroStrategy and Coinbase.

COIN rises, MSTR breaks record

In fact, it is obvious that the two companies have made a very serious rally, especially compared to mining companies, and therefore short investors may have targeted these two giants in the crypto industry. While Coinbase has risen from $70 in the summer to over $ 270 today, MicroStrategy’s stocks have broken record after record with Michael Saylor’s Bitcoin purchases. MSTR stock yesterday also renewed its own record once again with $1909.

They lost $6 billion

However, the transactions that “short position” traders have applied since the beginning of the year have not responded. The rise in Bitcoin also pushed up the stocks in this area. Short traders have therefore lost $6 billion since the beginning of the year.

“It may also be a countermeasure against the decline in investments”

Speaking to Bloomberg, S3 company manager Ihor Dusaniwsky stated that the increase in short transactions may be a protection, a “hedge” strategy, in case investors expect a correction somewhere due to the continued rise, or if their own crypto investments go in a negative direction.