Bitcoin’s meteoric rise following Donald Trump’s presidential victory has triggered significant losses for investors betting against the cryptocurrency and related stocks. Since November 6th, Bitcoin’s surge to record highs has inflicted billions in losses on short sellers, driven by optimism that a Trump administration will usher in a more favorable regulatory landscape.
The pain for crypto short sellers is expected to continue, with most cryptocurrency-related stocks jumping in pre-market trading on Monday. Coinbase, for example, saw a pre-market surge of nearly 16%, mirroring Bitcoin’s price rally.
Data analytics firm Ortex reports that traders shorting MicroStrategy, a major corporate Bitcoin backer, have lost over $1.2 billion between November 6th and 8th, and over $6 billion year-to-date. Combined losses for short sellers targeting Coinbase Global, crypto miners Riot Platforms and MARA Holdings, and blockchain farm operator Bitfarms reached approximately $1.2 billion as of the November 8th market close.
Bitcoin itself soared to a record high above $85,000 on Monday, marking a nearly 19% increase since November 6th, when Trump defeated Vice President Kamala Harris.
“Bitcoin speculators are anticipating a more lenient regulatory environment and believe authorities might establish a reserve crypto fund, further boosting demand,” explained Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Investors shorting the iShares Bitcoin Trust exchange-traded fund (ETF), the world’s largest Bitcoin ETF by assets under management, have also felt the sting, losing close to $37 million since November 6th.
During his campaign, Trump expressed support for digital assets, pledging to create a national Bitcoin reserve and position the United States as the global “crypto capital.”
