Bitcoin [BTC] prices are turning the tide for traders; Is more FUD to be expected

• Massive amounts of short positions were taken against BTC by institutional investors.
• Miner incomes fell, but share prices of the mining companies rose.

Over the past three months, the value of Bitcoin has [BTC] experienced a significant rise. Nevertheless, recent market performances for the coin hinted at a corrective phase, which has led to a decline in trader confidence.

Read Bitcoins [BTC] Price prediction 2023-2024

The card positions rise

According to the cryptanalysis firm Arkham Intelligence, Andrew Kang has taken massive short positions against BTC. Andrew Kang is an institutional investor, and co-founder of crypto investment firm Mechanism Capital.

The general market trend echoed Andrew’s sentiments. According to Coinglass’ data, the percentage of short positions taken against BTC increased from 47% to 50.6% in recent days.

Source: Coinglass

Although trader sentiment towards BTC was bearish, the addresses continued to accumulate BTC. This was demonstrated by Glassnode’s data, which said the number of addresses with more than 0.1 coins has reached an all-time high of 4.3 million.

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📈 #Bitcoin $BTC Number of addresses with 0.1+ coins just hit an ATH of 4,314,542

Previous ATH of 4,314,449 was observed on April 20, 2023

See calculation: pic.twitter.com/r343Qk0VtM

— glassnode alerts (@glassnodealerts) 21 April 2023

When they got to the miners, it was observed that they were facing a temporary period of hardship. Glassnode’s data indicated that miner fees have started to decrease.

This led to a drop in their income. In the last few days, the revenue generated by the miners dropped from $31.63 million to $25.97 million.

Source: blockchain.com

Take a look at the Miner Index

However, the challenges for the miners may be a temporary setback.

Data from hashrateindex showed that the Crypto Mining Stock Index has risen 115% so far in 2023, significantly above bitcoin’s 79% increase.

The Crypto Mining Index is a measure of the performance of mining companies, and indicates the general trend of the industry.

In 2023, the company Core Scientific achieved 455% and is currently the top performer. Its massive debt boosted equity during the market’s startup-only environment, and improvements in mining economics positively impacted cash flows.

Digihost, Cipher, Riot, Iris Energy and Marathon are other solid performers.

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Interestingly, these companies have relatively low debt levels and are less financially leveraged than Core Scientific.

They have all exceeded expectations this quarter with strong monthly operational updates. However, it is uncertain whether miners’ earnings will improve in line with the Crypto Miner Index.

Source: Hashrate Index