Goldman Sachs Reveals Most Shorted Stocks in Crypto Market

Goldman Sachs Research has released data showing that Bitcoin treasury firm Strategy (MSTR) and American crypto exchange Coinbase (COIN) are among the most shorted stocks on the market. The two companies have seen significant declines in value over the past six months, with MSTR's stock plummeting by around 60% and COIN's shares dropping by approximately 40%. This decline is largely due to the fall in cryptocurrency prices, particularly Bitcoin, which has dropped from its October all-time high of $126,080 to around $68,614 today.

The data compiled by Goldman Sachs shows that MSTR and COIN are ranked first and fourth in short interest as a percentage of market cap at 14% and 10%, respectively. While the companies have faced significant losses, with Strategy facing unrealized losses of around $5.3 billion, they remain popular among traders due to their exposure to the cryptocurrency market.

Skeptics have raised concerns that if MSTR shares fall far enough, it could force the firm to sell some of its Bitcoin holdings to repay debts, creating a cascading event within the market. However, Strategy's CEO Michael Saylor has defended the company, stating that it would be fine even if Bitcoin dropped to $8,000.