Bitcoin $BTC Approaching All Time High Short Interest Levels

This means traders/investors originally "borrow bitcoin" at a higher price and then hope to cash out when Bitcoin goes down and "sell" their borrowed Bitcoin. Simply stated, traders/investors acquire Bitcoin at current prices and then sell at lower prices. An example would be: Investor shorts Bitcoin at 7K, borrowing a certain amount of Bitcoin at 7K - Bitcoin then goes to 6,500 and the short seller cashes out. They use the borrowed bitcoin to now buy back in at 6,500 (making a 500 profit on each bitcoin).

His whole explanation is wrong. Shorting means, in short -pun intended-: borrow BTC, sell right away, wait till BTC drops or until the short contract expires, buy back the exact amount of borrowed BTC (plus interest), give back the borrowed BTC (plus interest).

"They use the borrowed bitcoin to buy back in at 6,500"...

Buying back BTC with BTC? This makes so little sense, it shows OP is really clueless.

/r/Bitcoin Thread Parent