Crypto Stocks Like MicroStrategy, Coinbase Could Shoot Up if Short Sellers Exit
Summary
Short sellers are targeting crypto-linked stocks, but the trade has become crowded, leading to potential short squeezes. MicroStrategy and Coinbase have the highest "squeeze score." The total short interest in crypto stocks is $10.7 billion, with MicroStrategy and Coinbase making up 84% of these bearish bets. The persistent rally in bitcoin and crypto stocks has caused short sellers to incur $4 billion in losses month-to-date. S3 Partners warns against doubling down on crowded trades, especially for stocks like MSTR, COIN, and CLSK.
