Source: Chengdu Business Daily is about 180000 yuan / piece. Short and long positions are bursting. Why is bitcoin soaring? At the end of 2020, Li Weiming, a reporter from Chengdu Commercial Daily and Red Star News, came again. Recently, bitcoin prices started to “skyrocket” mode, leaping over 20000 US dollars and 25000 US dollars in one fell swoop, and continued to set new highs. At present, it is more than 27000 US dollars, about 180000 yuan / piece. On December 27, bitcoin’s highest intraday price exceeded $28300, still reaching $27000 by the time of publication, with an overall market value of more than $500 billion. This market value has surpassed visa (NYSE: V), the world’s largest financial company, with a current market value of $430 billion in the US stock market. It has the largest and most complete electronic payment network in the world, with more than 2 billion users worldwide. Investors should be cautious. Some analysts think that they should rationally treat such crazy bullish views as Citibank. When institutions turn to bullish bitcoin, the public must be cautious, because they often have “ulterior motives”. Nouriel Roubini, an economics professor at New York University, said cryptocurrencies such as bitcoin should not appear in the portfolio of retail investors or institutional investors. The sharp rise in the price of bitcoin is speculative and driven by the manipulation of market tycoons. In fact, don’t just see bitcoin soar now, it has also plummeted, and fell very badly. Looking at the bitcoin price trend chart, the reporter found that bitcoin has experienced many ups and downs in the past five years, including more than 30 times of a drop of more than 20%, including the extreme situation of “cutting back”. In the case of increasing leverage, we can see the great risk of bitcoin. Bitcoin has been in the eye-catching rise this year, and it has become an absolutely beneficial asset under the global epidemic. Bitcoin’s price has soared about six times since it hit a new low of $4705 on March 13. In particular, in the last two weeks, it has risen from $20000 to $28000, breaking through eight integer levels. A few months ago, someone predicted on the social networking platform that bitcoin might exceed 100000 yuan, which was criticized by netizens. Now it has reached 180000 yuan. In the recent round of bitcoin’s soaring market, the once hot virtual currency community in China is very cold, and “stepping down” has become the mainstream voice. As a matter of fact, bitcoin is similar to Maotai of a shares, which is hard for ordinary people to afford. Guizhou Maotai (600519. SH) currently has the lowest price. Even if you only buy one hand, it will cost 180000 yuan, which is similar to the price of a bitcoin. Moreover, bitcoin and Maotai share prices are quite similar. The more you think it is unattainable, the higher it is. It’s not terrible to miss the bull market. It’s sad to see bitcoin go up and join the short camp. The “air force” did not expect that bitcoin had repeatedly reached new highs without any intention of callback, which led to a total of nearly 600 million US dollars, or 3.8 billion yuan, in the contract market in the past 24 hours. Among them, the largest loss of short orders of warehouse burst exceeded 65 million yuan. The “air force” suffered heavy losses. Are the “multi army” in the currency circle going to make a lot of money? The real situation may be surprising. The data shows that the contract market has also sold $316 million in more than 24 hours. “This is mainly because the price of bitcoin fluctuates too violently, which may lead to the risk of multiple and empty orders being sold out; at the same time, bitcoin is easy to leverage, and the leverage ratio can be very large, even up to 10 times or 20 times of leverage, and the risk can be imagined.” After studying the price trend of bitcoin, a chief analyst of a securities firm pointed out that, for example, the price of bitcoin rose by more than $28000 on the evening of the 27th, but suddenly fell below 26000 US dollars at 5:00 a.m. on the 28th, the highly leveraged people may be exploded in their sleep. The analyst said bluntly that he could not understand the bitcoin market, which was more difficult to grasp than the stock market. He suggested that investors should take a long-term view, especially without adding leverage. International investment banks add fuel to the boom. The recent boom in bitcoin may have something to do with the participation of payment giants. From the point of view of bitcoin price rising, it is just after PayPal, the global payment platform, announced that it will support cryptocurrency trading. It has been reported that PayPal recently purchased about 70% of the newly mined bitcoin. Square, another U.S. payment platform company, also entered the market to sweep up goods, resulting in a rapid decrease in the supply of bitcoin market, resulting in a continuous rise in prices. Last week, Tesla CEO musk also publicly expressed his interest in bitcoin. “The architecture of bitcoin is perfect, and there are other currencies, of course,” Musk said through the social networking platform. But I’m not sure that Tesla’s involvement in cryptocurrency is a good choice Mask’s comments excited the cryptocurrency circle, and investors speculated that Tesla might buy bitcoin. At the same time, analysts from international investment banks also added fuel to the fire, predicting that bitcoin may become the “Tesla of 2021”, and the future growth space will be as high as several times. Some analysts have even given us $74000, US $100000 ultra-high target prices. The target price given by Citibank is even more ridiculous, breaking through $300000! Tom Fitzpatrick, a strategist at Citibank, discusses the analogy between the 1970 gold market and bitcoin in his latest report bitcoin: gold in the 21st century. According to the report, structural changes in the modern monetary system have led to a world of fiscal discipline, deficits and inflation. Given that countries are printing a lot of money in response to the new epidemic, this will benefit safe haven assets such as bitcoin that have performed well in times of inflation. Tom Fitzpatrick predicts that the price of bitcoin will exceed $318000 by December 2021.