((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Shashwat Chauhan
Short sellers of cryptocurrencies and blockchain-related stocks have suffered heavy losses since November 6, after bitcoin soared to all-time highs, thanks to optimism from US President-elect Donald Trump that it would establishes a more favorable regulatory framework.
Short trading in cryptocurrencies looked set to take another blow on Monday, as most cryptocurrency-related stocks surged in pre-market trading in the United States. Among them, Coinbase saw a final increase of almost 16%, following the skyrocketing price of bitcoin.
Traders who bet against MicroStrategy MSTR.O, one of the largest companies backing bitcoin, lost more than $1.2 billion between November 6 and 8, according to data analytics firm Ortex. and have lost more than $6 billion since the start of the year.
Combined losses from short sales on crypto exchange operator Coinbase Global COIN.O, cryptocurrency miners Riot Platforms RIOT.O and MARA Holdings
MARA.O, and blockchain farm operator Bitfarms
BITF.O stood at around $1.2 billion, as of the close on November 8.
Bitcoin BTC=, the world's largest cryptocurrency, hit a record high above $82,000 on Monday, jumping nearly 19% since November 6, when Republican candidate Trump reclaimed the presidency after defeating Vice President Kamala Harris.
“Bitcoin speculators are betting on a more lenient regulatory environment and expect authorities to create a reserve fund for cryptocurrencies, which would help boost demand,” said money manager Susannah Streeter and markets at Hargreaves Lansdown.
Investors betting against iShares Bitcoin Trust IBIT.O exchange-traded funds, the world's largest ETF by assets under management, have lost nearly $37 million since November 6.
Trump embraced digital assets during his campaign, promising to amass a national stockpile of bitcoin and make the United States the “crypto capital of the planet.”
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