Crypto Short Squeeze 🪂
Crypto Short Squeeze 🪂
Bitcoin's rally hurts short sellers, costs $6 billion. JPMorgan CEO would shut down crypto if he could. Dogecoin celebrates its 10th birthday with a bang. Another "pig butchering" tale.
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All the Bitcoin rally is not quite pleasant for the short sellers.
The total loss = $6.88 billion.
Covered $2.19 billion throughout 2023.
The recent one-day wipeout = $387 million loss (Tuesday).
Notable crypto stocks and their short interest
Coinbase Global Inc (COIN): 14.97%
MicroStrategy Inc (MSTR): 22.81%
Marathon Digital Holdings Inc (MARA): 23.55%
Riot Platforms Inc (RIOT): 18.34%
Crypto stocks fly high
Crypto stock short traders lost $2.656 billion in the past three months.
Half of that, thanks to shorting Coinbase stock (up 300% since January and 51% in the last month)
Shorting MicroStrategy stock accounted for an additional 25% of the total losses.
MicroStrategy spiked 82% since October.
MicroStrategy is a significant corporate Bitcoin holder, which is really paying off.
In November, MicroStrategy acquired an additional 16,130 Bitcoin, and now they hold 174,530 BTC (approx. $7.6 billion).
Recent data from S3 suggests that the stage is set for a significant short squeeze.
In just 24 hours on Tuesday, crypto short sellers collectively lost over $387 million, signalling increased market volatility.
The potential approval of spot Bitcoin ETFs in the US, expected in January, could extend the challenges faced by bearish investors.
A Glimmer of Hope for Bears
While short sellers have covered $2.2 billion in 2023, there's still $697 million in new short selling since Bitcoin's low in September.
With the potential approval of spot Bitcoin ETFs in the US on the horizon, bears may have to endure the ETF-related hype for a bit longer.
Short Selling 101
Short selling involves borrowing shares, selling them, and hoping to buy them back at a lower price, with potential for substantial losses.
If a stock rallies, short sellers must cover positions by injecting more capital, potentially triggering a squeeze.
TTD Blockquote🎙️
JPMorgan Chase CEO, Jamie Dimon.
'If I was the government, I'd close it down.'
He's not a fan and would shut down crypto if given the chance.
He said that when Senator Elizabeth Warren asked about his views on cryptocurrency during a Senate Banking Committee hearing on Wall Street oversight.
"I've always been deeply opposed to crypto, bitcoin, etc."
Meanwhile, Senator Elizabeth Warren suggested that crypto had funded North Korea's missile program and terrorist activities.
Dimon's outspoken criticism of cryptocurrencies is nothing new. He has long been skeptical of Bitcoin and digital assets, advising people to avoid them and advocating for stricter regulation of stablecoins.
Other bank executives, including those from Wells Fargo, Bank of America, and Goldman Sachs, agreed that crypto firms should be subject to Anti-Money Laundering rules like traditional banks.
TTD Scam 🦹🏻
Todd, thought "Linda," was genuine until he lost almost $2 million.
“I didn’t suspect that she was setting up a trap to lure me into the investment scam.”
Three individuals shared their experiences of being swindled by an obscure cryptocurrency exchange called GateEx:
Todd: Lost almost $2 million.
Tony: Lost $400,000.
Glenn: Lost an undisclosed amount but mentioned paying a "income tax" of around $142,000 and an additional $120,000 late fee.
What happened?
The Setup: Victims lured via LinkedIn, WhatsApp, and more by seemingly educated scammers.
The Target: Silicon Valley, Australia, Taiwan.
The Trick: "Pig butchering"
In 16 transactions, Todd transferred funds to GateEx, converting them into Ether and USDT at "Linda's" request.
When they attempted to recover their lost funds, the victims were met with threats and intimidation from GateEx representatives. Despite their efforts, GateEx remained unresponsive to requests for comment.
GateEx, the crypto exchange at the centre of these crimes, remains shrouded in mystery. It lacks a clear location and operates under questionable circumstances.
Where’s ETF?🚨
BlackRock's disclosure of collecting $100,000 in seed capital for its spot bitcoin ETF is seen as a positive step, but not a major development👇
TTD CZ 🔶
Seattle District Court, Judge Richard Jones accepted Binance founder Changpeng "CZ" Zhao's guilty plea to money laundering.
Remember why?
Read this: Binance Bites the Bullet 🙊
Read this: What’s next for CZ?🔮
Read this: Teng's got a plan 🧠💡
"All parties shall appear before this Court for sentencing as directed."Judge wrote.
Sentencing is scheduled for Feb 23, 2024.
Zhao's request to return to the UAE has been met with opposition from federal prosecutors.
They argue that he might not return to the US, as there is no extradition treaty with the UAE.
Richard Promise
Binance's new CEO, Richard Teng, made his London debut by asserting the exchange's commitment to compliance and collaboration with regulators.
Teng acknowledged past mistakes and resolved issues with U.S. agencies.
He said:
"There were mistakes made, and we acknowledge those mistakes. We have now moved past them, we resolved those issues with US agencies."
"Going forward, we are focusing on being a user-led organisation, but also a compliance-led organisation."
"We are accountable to the regulators that regulate us. Is there a need to share all this information publicly? Most private companies don't publish that kind of information."
TTD Doge 🐶
Dogecoin, the iconic meme cryptocurrency known for its Shiba Inu logo, marks its 10th birthday.
The celebration is in full swing as Dogecoin's price soared past $0.10, a level it last achieved exactly a year ago on December 7, 2022.
Current Price: $0.094
The Highlights:
10-Year Milestone: Dogecoin was introduced by Billy Markus and Jackson Palmer on December 6, 2013, and it's still going strong a decade later.
Price Surge: Dogecoin's price has jumped to just above $0.10, marking a remarkable 16.8% increase in a single day.
Aim for the Stars: While Dogecoin's current price is impressive, it has yet to reach its all-time high of over $0.73, achieved in May 2021.
Meme Coins Unite:
Not just Dogecoin, others like Shiba Inu (SHIB), PEPE, and BONK have experienced double-digit gains on Dec 6. The entire meme coin category has surged by 11%, reaching a combined market cap of $23.7 billion ($22.1 Billion now), according to CoinGecko.
TTD Surfer 🏄
Coinbase has announced that it will list the Jito token on its platform following the Jito airdrop on the Solana blockchain.
Do Kwon appealed a court decision that approved his extradition to the United States or South Korea.
Hong Kong regulators are cracking down on crypto fraud by blocking access to two websites, HongKong DAO and BitCuped.
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