While US ants (individual investors) are waging a war with hedge funds that sold short to Gamestop, the next battleground is likely to become a cryptocurrency (virtual currency) market such as bitcoin, according to the US economic media CNBC on the 1st ( Local time) reported.
The common thing between Reddit ants and bitcoin investors, who gather on Reddit, an SNS preferred by young Americans, and wage a war with the short selling forces is that they reject the existing system.
In addition, some hedge funds are betting short on cryptocurrencies such as bitcoin. Short selling refers to selling stocks in anticipation of a fall in stock prices. When the stock price falls, it buys the stock at a low price and pays it back. It is profitable as the stock price declines. Conversely, if the stock price rises after selling the borrowed stock, loss is inevitable.
Bitcoin data company’The Block’ estimates that hedge funds are betting short of about $1 billion (1,117.5 billion won) of bitcoin.
Hedge funds are betting short on bitcoin, but ants are constantly buying bitcoin.
The atmosphere is ripe for a war between ants and hedge funds that sell short.
In fact, such signs are showing. On the 29th, Elon Musk, the idol of ants around the world, changed his profile to’#bitcoin’. It means to support Bitcoin. Since then, Bitcoin has soared about 20% thanks to the ants’ buying trend.
Musk is a person who hates short selling. This is because Tesla was a intensive target of the short selling forces in the early days of Tesla’s founding.
In various circumstances, CNBC predicted that the next stage when Reddit ants will wrestle with the short selling forces is likely to be a cryptocurrency market such as bitcoin.