REPORT FROM S3 PARTNERS SHOWED HOW SHORT-SELLERS OCCUPIED THE CRYPTO STOCKS
Short traders have killed off in various US stock market segments this year, but no other sector has been "candlestick" in the blockchain industry, with the crypto company short traders making 126% profits by 2022, according to new data. .
On Thursday, technology and data statistics company S3 Partners released a video summarizing its latest report, which found that overall, short sellers of U.S. shares. they have increased by an average of more than 30% per year.
Some of these profits were revealed in the short-term sale of cars and stock parts (up to 54%), software and service stocks (up 50%), media and entertainment stocks (up 46%) and stores (up from 46%). for the year, although all this is slim compared to crypto shares, making the best-selling profit increase by 126% by 2022:
"But none of these industries are holding a candle for short-term traders in the crypto sector, which has risen 126% with short interest rates of between $ 3 billion."
Crypto shares with very low interest rates include Coinbase Global, Bitcoin miner Marathon Digital Holdings and MicroStrategy, a software company known as the owner of Bitcoin (BTC) which is widely traded publicly.
Short-term sales occur when an investor borrows a mortgage and sells it on the open market which is expected to repurchase it in the future for a small fee, making a difference. This is advantageous when prices fall.
Short-term interest is the sum of a number of shares in a particular stock that has been temporarily sold by investors but not yet covered or closed. Short-term high or rising interest rates may indicate that investors are not optimistic about a particular stock.
At the time of writing, Coinbase shares are down 79.67% year-on-year (YTD), Marathon Digital is down 80.02% YTD and MicroStrategy is down 71.10% YTD, according to Google Finance.
However, S3 Partners states that although the pace of crypto short sales is still high, with $ 71 million of new short sales over time, the amount of assets available for borrowing is declining - meaning "potential short sellers may be late to the party:"
"With 91% stock market utilization, short-term trading can be difficult to do, and borrowing prices can make it expensive for new and existing short-term sales."
Consumption is measured by the number of shares divided into stocks available on the mortgage market, with a high level of consumption indicating that the demand for stock from short sellers is high.
On Tuesday, S3 Partners' managing director of predictive analytics, Ihor Dusaniwsky, told his 82,000 Twitter followers that Coinbase's short-term interest rate reached $ 1.52 billion on June 14, while MicroStrategy's short-term interest rate reached $ 689 million. Short-term interest of Marathon Digital Holdings has reached $ 181 million.
The decline in crypto stock prices is accompanied by a fall in crypto prices and a decline in traditional markets amid rising interest rates and high inflation.
On Thursday, the price of Bitcoin dropped to $ 20,205 as rumors circulated about the possible collapse of the crypto hedge fund Three Arrows Capital (3AC).
Recent price movements have led some analysts to believe that a much longer period of consolidation and accumulation of the crypto market is coming.