126% return for stock market short-sellers who smelled blood in crypto waters
Short-sellers have made a killing on various sectors of the U.S. stock market this year, but no other sector "held a candle” to the blockchain industry, with crypto company short-sellers profits up 126% in 2022, according new data.
On Thursday, technology and data analytics firm S3 Partners published a video summarizing its recent report, which found that overall, U.S. equity short-sellers are up on average more than 30% for the year.
Some of these profit gains were attributed to the short-selling of automobiles and components stocks (up 54%), software and services stocks (up 50%), media and entertainment stocks (up 46%) and retail stocks, (up 46%) in the year, though these all paled in comparison to crypto stocks, which saw short-selling profits up 126% in 2022.
Crypto stocks with the highest short interest include exchange Coinbase Global (COIN), Bitcoin miner Marathon Digital Holdings (MARA), and MicroStrategy (MSTR), a software company that is also known for being the largest publicly traded holder of Bitcoin.
#Crypto short sellers are up over 30% in 2022! ⁰⁰Want to know what’s on the horizon? Check out the video below to learn more.⁰#s3data #markets #shortinterest #trading #hedgefunds #sentiment $COIN $MSTR $MARA @ihors3 pic.twitter.com/LQLmAwjZFk
Short selling occurs when an investor borrows a security and sells it on the open market with the expectation to buy it back in the future for less, pocketing the difference. This is profitable when prices decline.
Short interest is the total number of shares of a particular stock that has been short-sold by investors but has not yet been covered or closed out. High or increasing short interest could indicate that investors are pessimistic about a certain stock.
At the time
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