Quick Take Bitcoin mining stocks have seen a remarkable performance in 2023, outpacing Bitcoin’s already impressive 160% YTD surge. Key mining players, including Hive and Marathon Digital Holdings, have recorded skyrocketing growth figures at an astonishing 274% and 767% YTD, respectively. Data from Fintel points to an intriguing phenomenon – a significant percentage of short interest in these mining stocks, corroborated by analyst Mortensen Bach. This short interest has added momentum to their upward trajectory. CryptoSlate observed a divergence a few months prior between miners and Bitcoin’s price, a trend that has now caught up and exceeded the Bitcoin price. Mining Stock Short Interest % $HUT 32.74% $WULF 22.58% $MARA 22.60% $CIFR 20% $RIOT 18.16% $BTBT 13.73% $CLSK 8.42% $SDIG 7.20% $BITF 6.51% $HIVE 5.25% $IREN 4.01% $BTDR 3.13% $MSTR 20.93% Source: Fintel The Bitcoin mining proxy, WGMI, has surged 143% in the past three months, compared to Bitcoin’s 64% increase. The interplay of high short interest and rising prices on these mining stocks suggests a potential short squeeze scenario playing out. As prices continue to climb, shorts may be closing their positions, propelling prices upwards.
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