Miners in China Are Now Shorting BTC Heavily
It is no news that the entire crypto industry has found itself at the bottom of an unending bear market since February this year.
Although the entire industry has been affected one way or the other, the most visible effect of the bear market can be seen in the mining sector. Recent news has seen miners selling of their mining hardware or dumping it on the street of China. However, a recent report has made it known that miners in China are now shorting BTC heavily, in order to hedge against the intense bear market conditions.
No Longer Hoping
Based on a report from a local media outlet, a miner named Jin Xin has made it known that he and his fellow miners are no longer waiting around and just waiting for the market to turn around, he made it known that along with other miners he has been short selling BTC to hedge against bearish market conditions.
According to the report Xin stated that:
“If I mine 30 coins in the next month, while the price may continue to fall by another 10 percent according to the current trend, I shall place a short order on the exchange to sell them at the current price, but deliver one month later,”
Xin has further described this action as a form of self-defence against the unbearable bearish market conditions. Xin reportedly stated that: “unless they short sell BTC, some miners will be ultimately eliminated.”
Survival
On how he and other miners in the region have been able to survive up till now, despite the unprofitable market conditions. Xin made it known that he has been buying used miners from miners who are no longer interested in mining. So once the used miners reach a “point of unprofitability” he breaks them apart and sells them off as parts. Xin plans to continue this cycle once the market becomes bullish again.
