Empty sellers put a lot of money on the decline of cryptocurrency

Empty sellers put a lot of money on the decline of cryptocurrency

stock dealers who wanted to benefit from falling cryptocurrency prices aimed at large actors in the field of digital assets this week, with coin base and microstrategy being the most affected.

Leer sellers put more than $ 631 million on Monday to the continued relegation of six top crypto stocks, which corresponds to 39 % of their total trade volume for the day.

The Spot cryptoma markets lost 16 %at the weekend, which indicates that empty sellers were eagerly waiting for the opening of the stock markets to capitalize on the chaos.

The Top-US-crypto exchange Coinbase has attracted most of the anger and was confronted with a vacancy of $ 393 million on Monday-74 % above the annual average, according to the FinRA data compiled by Blockworks. Finra follows the volume both on the NYSE and NASDAQ, but its data excludes private markets and could count short trades that are not specially converted into an open short.

On the same day, Coinbase announced that it was almost a fifth of the staff: more than 1,000 employees. Chief Executive Brian Armstrong spoke of a possible US recession. The coin base shares have been around 16 % since the end of the trade.

Also on Monday, empty sellers set $ 124 million against Microstrategy-the data reconnaissance company of the Bitcoin bull Michael Saylor.

microstrategy shares recorded an average of $ 70 million of empty sales last year, which means that 77 % more microstrategy sales were recorded on Monday than usual. The technology company's shares have now fallen by 25 %.

Microstrategy maintains the largest corporate bitcoin reserves of all listed companies and in April 129,218 BTC worth $ 2.7 billion. The company's market capitalization is only $ 1.8 billion.

The Signature Bank based in New York recorded an even bigger short climb. Via his crypto-specific Signnet service Signature monitored US dollars of crypto deposits (as of May), including $ 7 billion in stable coins. Market participants, including stock exchanges, miners, funds and fiat-supported stable coins, such as the USD of Circle Coin (USDC) and Trueusd, all banks with signature.

Leer sellers initiated around $ 53 million of bets against the Signature Monday, 82 % above the annual average. The company's shares lost 20 %.

The increasing losses are despite the fact that the bank has "practically no credit risk" about its cryptooperations, since its balance sheet of digital assets consists almost exclusively of deposits, so A Longest analysis.

The rival Silvergate, on the other hand, recorded only 14 % more empty sales on Monday than the average or about $ 24 million. Silbertor views Around $ 15.8 billion in managed assets on March 31, the latest available data, which makes the company one of the largest crypters.

In February, the company spent $ 182 million in order to acquire assets and technologies that were once intended to operate Metas failed stable coin offer. The share price has also been made by 20 % since the end of retail on Friday.

empty sellers could next crypto mining shares to target

Shorting specialists may not yet focus on top miners, since these companies are at least theoretically large enough to acquire new mining rigs and power sources relatively cheap, Bitcoin mining consultant Alejandro de la Torr told Blockworks.

It could bring some public crypto miners into a better position at least at short notice than some of their smaller, non-listed colleagues. Todd Esse, co-founder of the Bitcoin mining fund Hashworks, told Blockworks, he expects to expect to be targeting certain susceptible mining shares in the future.

The short interest of Microstrategy achieved 30 % (3.4 million out of 11.30 million outstanding stocks) in May, but has dropped slightly since then. Signature Bank's short positions have risen sharply: Short interest rates have risen by 60 % month after month and are now with 2.57 million shares of almost 63 million outstanding stocks.

"Pure Bitcoin games went back slightly in the short-term interest, while wider crypto games have increased significantly this month," said Oisin Maher, co-founder of Quantx. In particular, the short interest in the shares of the cryptoasset manager Voyager Digital in the USA exploded by about 600 % in June, while Galaxy Digital has grown steadily all year round.

top crypto stocks already booked more short volume in June than last September-when Bitcoin was more worth twice of his current price.

Nevertheless, Finra data show far more bets on the decline of crypto in the last month, in which the Terra ecosystem imploded and the Celsius loan platform staggered.

In fact, a total of shorts worth more than $ 11 billion against Coinbase, Microstrategy, Signature, Silvergate, Marathon and Riot opened in May-almost 70 % were collected at Coinbase.

Leer sellers only received more bets against these crypto shares last year; Together in October and November, empty sales were opened worth more than $ 19 billion when Bitcoin has just withdrawn from his record high of $ 69,000.

The total value of all cryptocurrencies has dropped by 65 % since then - which indicates that there are some very happy empty sellers. The latest Data this year it shows almost 4 billion US dollar this year Have taken empty sales of crypto shares.