Why You Could Be WRONG About "Bitcoin Miners Selling Their Bags."

The current sell-off of $BTC is just the reaction to the bearishness of the macroeconomy. In short, the FUDs around why $BTC is dumping could be invalid in the face of wall street's bear. Especially the hypothesis that said $BTC plummeted was the result of Bitcoin miners selling their bags to cover equipment costs.

First of all, let's have a look at NASDAQ100 and BTCUSDT. The positive correlation between NASDAQ100 and $BTC is very high these days, which could translate to the market getting rid of its risk assets and start paying debts. The main factor that caused the crash of $BTC is the macro — Fed rising rate; those sophisticated indicators in technical analysis are likely not going to help predict the future price movement of $BTC unless they can peek into Jerome Powell's mind. The miners, if forced to sell $BTC, is the indirect result of the rate hike.

I speculate there's not much sell pressure from the Bitcoin miners. The reason is that miners usually will hedge their future $BTC earnings by buying put options. With hedging, the selling pressure from miners should be even out over a longer time frame; hence, the suffocating selling pressure shouldn't be from miners.

Moreover, considering that the $BTC hashrate didn't fall that much implies the miners are still mining happily. (BTC didn't drop to the point where mining is unprofitable and should dump BTC immediately to cover costs)

$Conclusion$

We can't assume that the whales (institutions and miners) handle their crypto like us (retail). Those big players usually have ways to hedge their crypto holdings.

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