Should you be shorting Bitcoin? – The Wall Street Journal
Bitcoin prices are soaring – the cryptocurrency was trading above $11k this week. But not everyone is a bright-eyed optimist. In fact, as data from our partner The Wall Street Journal shows, a growing number of Bitcoin shorts are piling up. Essentially, many big traders – especially hedge funds – are placing substantial bets that the digital currency will fall in the near future. This is a fairly rational strategy, given the coin's long history of bull runs and bearish crashes. So, should you be out there shorting Bitcoin? Well, that all depends on how sophisticated a trader you are and how much tolerance you have for loss. The price of the cryptocurrency may well fall, and fall fast, as it did at the beginning of the year. But always remember that markets can remain irrational much longer than you can remain solvent. – Felicity Duncan
Is There a Big Short in Bitcoin?
By Alexander Osipovich
Hedge funds and other big traders are betting that bitcoin will fall, even as the digital currency has risen above $11,000 on a new wave of crypto-optimism.
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