Bitcoin Mining Stocks Outperform BTC as Heavily Shorted Names Rally Despite Price Slump

Several U.S.-listed Bitcoin-linked stocks are outperforming Bitcoin itself, as select mining companies rally sharply despite ongoing volatility in the underlying cryptocurrency.Shares of TeraWulf (WULF) have surged 31% month-to-date, even as Bitcoin has fallen nearly 17% over the same period. Other miners have also posted gains, with Cipher Digital (CIFR) up 8% and Hut 8 (HUT) rising 6%. Core Scientific (CORZ) has remained broadly flat, holding its ground amid market turbulence.Heavily Shorted Miners Attract Alpha SeekersAccording to Markus Thielen, founder of 10x Research, these miners rank among the most heavily shorted stocks by hedge funds, creating conditions for sharp upside moves if sentiment shifts.“With long-term energy contracts secured at attractive rates, these firms possess a strategic advantage that extends well beyond pure Bitcoin mining,” Thielen said in a note to clients. He added that capital is increasingly flowing toward structural winners, while less efficient legacy operators risk being left behind.Bitcoin Stabilizes as ETF Inflows Pick UpBitcoin has recently rebounded above $65,000, a move analysts attribute partly to strength in Nasdaq 100 futures. The recovery came despite Donald Trump making no mention of crypto during his State of the Union address.Investor sentiment showed tentative improvement as U.S. spot Bitcoin ETFs recorded $257.7 million in net inflows on Tuesday, the largest single-day inflow since early February, according to SoSoValue data. Analysts caution, however, that sustained inflows will be needed to confirm a durable market rebound.Key Bitcoin Levels in FocusFrom a technical perspective, traders are closely watching critical price thresholds. Vikram Subburaj, CEO of Mumbai-based Giottus, said Bitcoin is trading near major pivots.“A sustained break below $60,000 is widely framed as a downside trigger, with around $57,500 as the next notable level,” Subburaj said. “On the upside, reclaiming $72,000–$75,000 would be a clearer signal that risk appetite is returning.”Macro Headwinds Still LingerIn traditional markets, the U.S. Dollar Index reversed early losses, applying pressure to dollar-denominated assets such as gold and Bitcoin. Oil prices slipped after a rise in U.S. stockpiles, though downside remained limited amid concerns over potential U.S.–Iran military escalation.While Bitcoin remains range-bound, the relative strength in select mining stocks suggests that equity investors are selectively positioning for upside, even as the broader crypto market continues to navigate macro and liquidity headwinds.