Compared to last year, the crypto market has totally crashed down. Especially, the price of Bitcoin tops in the market which has reached upto 20K USD. But this year, it nearly went down to $3.1K which is a total loss for the investors.
This is a world where fall in a single cryptocurrency (Bitcoin) takes a toll on the prices of all other cryptocurrencies as well. And as prices fall more and more, panic buttons are hit. As Bitcoin touched its lowest mark since September last year it’s turning out that the foundation to make it fall that much had already been laid by none other than the miners themselves.
Many of the Chinese Bitcoin mining pools are short-selling Bitcoin as a hedge against the falling Bitcoin prices. Mining has already become an unprofitable business since the prices plunged below $4,500 level, and it’s turning out that in an effort to shield their operations from the fall miners themselves have done the hard work to make Bitcoin fall even more by short-selling it. This is a new trend reflecting the changing dynamics of crypto space.
Back in the days when Bitcoin’s prices were touching the sky, miners used to hold on to their mined Bitcoins in expectations of better ROI. Unfortunately, that is no longer the case. Nowadays miners have not only sold all their stored Bitcoins but have also been betting on the price of BTC to fall even more by short-selling it.