Short sellers of cryptocurrency and blockchain-related stocks have suffered heavy losses since Nov. 6, after bitcoin surged to record highs, on optimism U.S. President-elect Donald Trump would implement a more favorable regulatory framework, according to Reuters.
Traders who bet against MicroStrategy, one of bitcoin’s biggest corporate backers, lost more than $1.2 billion between Nov. 6 and Nov. 8, according to data analytics firm Ortex, and are down more than $6 billion so far this year.
Combined short-selling losses on crypto-exchange operator Coinbase Global, crypto miners Riot Platforms and MARA Holdings and blockchain-farm operator Bitfarms were about $1.2 billion, as of the Nov. 8 close.
Investors betting against iShares Bitcoin Trust exchange-traded funds, the world’s largest ETF in terms of assets under management, lost close to $37 million since Nov. 6.