Nearly 90000 people are out of stock! Bitcoin drops more than 10% from its high level

Bitcoin is playing heartbeat again! Affected by the fluctuation of bitcoin price, the reporter can see from bitcoin home website that in the past 24 hours, nearly 90000 people have burst positions due to highly leveraged trading, with an accumulated amount of 8.032 billion yuan. In the past 24 hours, the highest price of bitcoin was US $33503.3 and the lowest price was US $29000, down more than 13% from the peak, with 89052 people selling out. Among them, on the evening of January 4, bitcoin prices plummeted, leading to a collective explosion of highly leveraged long bitcoin investors, with the largest amount of exposure of $12.93 million. At the beginning of 2020, the price of bitcoin was about 8000 US dollars. Since October, bitcoin began to rise rapidly from US $11000. By November 30, the price had exceeded the highest price in the history of coindesk of US $19665. In December, bitcoin prices broke the $20000 mark for the first time. In 2021, bitcoin broke through US $30000 on January 2 and US $34000 on January 3, setting a record high of US $34792. What is the reason for this “madness”? According to the research report released by Zhongtai securities, the nature of the rise in Maotai, house prices and bitcoin is the same. When money is over issued, buying gold, Maotai, core stocks, and core real estate is a process of re searching for scarcity. The scarcity of bitcoin is its main feature, which is different from paper money and tulip. The latter two can be printed and produced infinitely. In other words, the overall volume of bitcoin is still very small, and it will take a long time to reach the same scale as gold. With a large number of institutions for asset allocation starting to “hoard money”, bitcoin has actually entered a “deflation” state. According to the statistics of bitcoin Treasury, the value of bitcoin held by 29 companies in the world is more than US $30 billion, accounting for 5.48% of the total supply of bitcoin. If this trend continues, there will be fewer and fewer bitcoins on the market, and institutional investors may be able to buy and “take away” bitcoins once held by retail investors at high prices. MicroStrategy, a NASDAQ listed company, has the largest number of bitcoins in its reserve assets. The software manufacturer owns 70470 bitcoins and has a market value of about $1.88 billion. The company’s share price has risen 124% since it announced its investment in bitcoin in August last year, and some bitcoin investors hope to hold bitcoin indirectly by holding shares in the company. It is pointed out that these institutions lock up a large number of bitcoin holdings, which is the leading factor leading to the rapid rise of bitcoin prices. This also makes the behavior of retail investors short bitcoin extremely risky. William Wilhelm, chief researcher of okex Research Institute, once analyzed that bitcoin has never been a safe haven asset. So far, at least, it is still a high volatility risk asset with the highest volatility in the world. According to the past trend chart of bitcoin prices, from 2016 to now, there have been 10 times of a cumulative decline of 20% or more, 7 times of a 30% decline and 4 times of a drop of more than 48%. Hong shuning, a blockchain expert, also reminded investors on the public platform that “the acceleration of bitcoin price rise will inevitably form a larger bubble, especially the risk.” “Market excitement has been further amplified, driving bitcoin prices to rise rapidly.” William reminded that young ordinary investors need to be rational and correctly realize that bitcoin is a high-risk asset rather than a safe haven asset, and its price fluctuates greatly. Therefore, it is not necessary to increase the leverage easily, otherwise the investment risk will be further enlarged. “Do not reprint without permission”

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