In the past few days, Bitcoin has continued to heat up in the market, and the topic of Bitcoin has suddenly become a hot topic in the global financial market.
Even in China, before this happened, the central government and other seven major departments jointly issued three orders and five affirmative orders to prohibit the circulation and trading of virtual currencies in the country.
This blockade was like the seven swords descending from the Tianshan Mountains. It once severely reduced the market value of Bitcoin, causing its market value to slump for a period of time. A large number of investors from China rushed to panic and sold, triggering a huge increase in its market value.
diving.
However, nothing is absolute. From another perspective, this is undoubtedly an opportunity to buy at the bottom. While the market value of Bitcoin has plummeted, a large number of low-priced chips have also appeared on the market.
For international hot money or retail investors in overseas markets, as long as they recognize the value of encrypted digital currencies, they will definitely not miss such a good opportunity to take over.
The global financial market is indeed complicated when it comes to complexity. The interests of all parties are intertwined and can affect the whole world. Any slightest disturbance in the news may trigger market panic and then cause an avalanche-like chain reaction.
Events like this have been repeated countless times in the short few hundred years since the financial market was established, and it can be said that it is not uncommon.
But sometimes, the market is simple and simple. It is nothing more than a process of beating drums and passing flowers around. As long as there is always a next player to take over, the flowers will not fall to the ground.
Vice versa, if no one takes over, it means that the flower is in your hands, and its value may be greatly reduced and become worthless.
Under the background of market economy, this flower can encompass everything and be anything, even if it is just an illusory concept.
As long as the rules of the game are established and there are players willing to enter the field to play drums and pass flowers, then the game will naturally proceed naturally.
Obviously, just a ban from Chinese officials will only have a certain impact on the value system of Bitcoin, but it will not be able to shake its foundation.
Even taking this opportunity, it proved the superior risk resistance of the cryptocurrency system and its uniqueness that is difficult to ban on a technical level.
Even if the world's second largest economy prohibits its local circulation, it is still impossible to eliminate its existence at the technical level. This has become an important basis for verifying its core concept of "decentralization".
Based on this alone, there are naturally many speculators who are willing to enter the market to take over the market, especially the entry of a large number of institutions. Compared with the wanderers in the market, well-trained institutions are always the main force in the market.
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Although retail investors often have strength in numbers, most of the time they are just a mob. Even if they account for more than 80% of the market, they are often not the opponents of the 20%.
Just as ammunition is needed to fight a war, institutions naturally need chips to enter the market. After a period of collection, the chips gradually began to be highly concentrated in the hands of some institutions, and at the same time, the market value began to rise.
The institutions that were the first to enter the market and get chips can naturally enjoy the gains. However, as the market became more popular and a bull market gradually emerged, the latecomers who heard the news were naturally not willing to be left alone.
However, when the market is booming, the future prospects are bright, and the market value is rising all the way, the number of chips flowing in the market will naturally decrease visibly.
Especially after Bitcoin successfully reached US$7,000, its transaction volume also broke through to a new high of US$4 billion and quickly fell back to the normal range of US$2 billion.
And the market value of Bitcoin is still rising further, fluctuating step by step in the range of 7,600 US dollars, and it seems that it may accelerate again at any time, breaking through the 8,000 US dollars mark.
In this case, the market's willingness to trade will naturally decrease. After all, everyone is unanimously optimistic about the future market performance and believes that Bitcoin will continue to rise. Naturally, no one is willing to let go.
Whoever sells it is a fool!
For newcomers, seeing such a big piece of fat in front of you, but suffering from the lack of admission tickets and no way to get a share of the action, this heart-wrenching feeling is just like a beautiful woman posing in front of you.
, but separated by a layer of bulletproof glass.
This is especially true for some institutions that want to enter the market.
However, there are always more ways than difficulties. Since you don’t have any chips, you can just make something out of nothing... The method is also very simple, just borrow it from someone who has chips.
Especially for institutions that are the first to enter the market and are ready to reap the benefits, they have a large amount of chips in their hands. It is naturally impossible to sell them, but they can borrow them, and they can still keep them anyway, and they can still collect some interest.
At any time, lending is a business that is guaranteed to make a profit. After all, before lending, in order to prevent you from defaulting on the loan, collateral is always necessary. If the loan is not paid, there is still collateral to top up.
Naturally, after spending so much effort to borrow chips and paying high interest, the purpose is not to just put the chips in your hands and watch, but to use them as admission tickets to participate in this game.
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After all, the rules of the game are there. Only with chips can you participate in the game, just like without game currency, you can only watch from the sidelines.
Even if you have some fantastic operating skills in your mind and can easily complete the level in one life, you still have to put in coins to get started, otherwise it will all be a fantasy.
Only when you have chips in hand can you have room to operate.
And if the chips obtained at such a high cost cannot create excess profits, then in the end it will still be a loss-making business.
To achieve this, it is naturally difficult to achieve it by taking the conventional route. There is only one way, and that is to go short.
As the Bitcoin market gradually improves, its asset-neutral status has been widely recognized. Even the famous CME Group has launched Bitcoin futures, which has created sufficient market conditions for short selling.
The so-called short selling process is basically as mentioned in the appeal. In short, it is to sell high and buy low to earn the difference.
Sell the high-priced chips you get, wait until the market price drops to a certain range, and then buy low-priced chips and return them, thereby earning the middle price difference.
Although the principle is simple, the actual operation is undoubtedly extremely complicated. Just like I told you, as long as the basketball is put into the basket, you can score. If the score is high, you can win. Well, now you can play in the NBA.
However, for retail investors, it is naturally a fantasy, but for professional institutions that eat this bowl of rice, it is naturally nothing but familiarity.
In particular, short-selling, a common operation, is a common occurrence for Wall Street institutions that often play short positions in the market.
In addition to professionalism, the sufficient funds in the hands of institutions are undoubtedly a major reason for their unfailing success in the market.
This is why institutions that occupy 20% or even less of the market are able to play the main role in the market. Not only do they have sufficient ammunition, but they often have a faster understanding of market news.
Plenty of firepower, hit wherever you point, well-informed...
If two armies were to confront each other, the one with the above factors would undoubtedly have a hard time losing, unless the commander was a very smart person, such as... the commander-in-chief had a high opinion (funny).
Obviously, those who have the above elements in the market are often institutions, while the other side is retail investors. With such a huge disparity in strength, if there is a choice, no one will like to play this one-sided game.
Crush game.
It's fun to mow the grass, but as the one being mowed, you naturally don't have any gaming experience at all.
For this reason, for the sake of game balance, it is naturally necessary to establish some rules to restrict the former and protect the latter from thriving.
To a certain extent, the existence of rules is indeed a protection mechanism for leeks, and at this point, looking at the global stock market, Big A is definitely the best and understands everything.
However, the Bitcoin market, which is said to be decentralized, has 24-hour uninterrupted trading, and has no supervision, is like having its shackles removed for the strong, and they can act without any scruples.
For the weak, it may remind them of the fear of being dominated...
In the market, there may be differences between the bulls and the bears, but they are not incompatible. In the face of interests, the bulls do not mind wearing the mask of the bears.
After all, making money is not shabby.
As the market value of Bitcoin continues to surge, and is on the verge of reaching the $8,000 mark, the thirsty sickle quietly falls.
On an ordinary day, the wind was calm and the sun was shining brightly, but the weather suddenly changed in the market.
A large number of selling orders suddenly appeared in a concentrated manner, and highly concentrated chips began to be concentrated on the market. Bitcoin, which had once reached $42 yesterday, fell immediately. The market was caught off guard and there were not enough buying orders to accept, and the market value plummeted instantly.
It fell all the way, suddenly falling to 7,000 US dollars, and it was likely to fall below the 7,000 US dollars mark. However, as the short sellers took action to destroy the market, the market was naturally unlikely to show a one-sided trend.
Whether it is retail investors taking advantage of the opportunity to buy the bottom, or institutions enjoying the profits, they are all playing the role of many parties at this moment, fighting to the death with the short sellers in front of the $7,000 mark.
Both sides were going back and forth, releasing all the ammunition in their hands, and the fight was extremely enjoyable. However, on such a pitch-black battlefield, who could tell the difference between enemy and friendly forces?
After all, in this anonymous trading market, the only position is to have no position.
Therefore, while the long and short sides were fighting back and forth, someone on the long side suddenly took off their mask, revealing the true nature of the short side. They showed off their cards and stopped pretending. In turn, they threw out all the chips in their hands.
There are no bulls and bears, only interests come first.
Even if you are really optimistic about the future prospects of Bitcoin and are bullish about the market outlook, it does not prevent you from taking advantage of this opportunity and searching for more low-price chips. Short selling is just a means, and grabbing chips is the purpose.
Under the sudden defection of many major institutions, retail investors who do not know why are naturally easily led to sell their chips, thus further reducing the market value.
The trend of the entire market suddenly changed, and the $7,000 mark fell instantly. The market value suddenly fell to $87, and a red and big negative line appeared on the market, which was extremely scary.
(Unlike the domestic market, where green falls and red rises, the opposite is true abroad)
Even if the value system of Bitcoin has been established, you must know that any consensus is extremely fragile when it is initially gathered. Once there is a disturbance, it may fall apart in an instant.
Especially in this market where there is no trust at all, retail investors are completely powerless to resist whether they are calculating mentally or not.
With the panic spreading, how many people can have the determination to hold on to the chips in their hands and choose to stand guard in a high position?
This kind of determined people are always only a very small minority in the market. The vast majority of people follow the selling, fearing that they will be caught if they are too late.
In this case, a well-prepared institution only needs to open its big mouth at a low position in an orderly manner and eat the chips into its mouth one by one.
Over the past two days, Bitcoin has plummeted by more than -78%. Amid the stampede of retail investors, trading volume has reached a new high, reaching the US$5 billion mark.
However, there are many jackals, tigers and leopards, and such a small profit is naturally not enough to satisfy their appetite. Therefore, after reaching an initial consensus, they mobilized sufficient firepower and prepared to pursue victory and make the final decision!
On a dark and windy night, when people are killing people and setting fires, all the institutions that have gathered their strength come out in force, forming a joint force to smash the market together, ready to bite a piece of meat from the hands of retail investors.
Over $1 billion in sell orders instantly appeared on the market, creating a huge hole in the market with an almost devastating force, and the market value instantly fell below the $6,000 mark.
In the face of the well-prepared regular army, ordinary stragglers were simply unable to resist. Apart from joining them, the only other option was to surrender.
The market value of Bitcoin once plummeted from US$05 to US$01, reaching the lowest point in a month since this round of accelerating market conditions.
In an anonymous market with no price limits, watching Bitcoin evaporate thousands of dollars in front of your eyes is undoubtedly an extremely painful process.
For investors who enter the market at a high position, this is undoubtedly cutting their flesh with a blunt knife. Even if they are investing with low-priced chips, it is naturally uncomfortable to see the green knife in their pocket disappear.
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Whenever you think you have hit the bottom, the downward curve on the market is like testing your nerves, and it drops one more section, as if there is oil below, and you are digging deeper.
As a result, the oil was not dug out, but the mentality of many retail investors collapsed.
Okay, okay, it’s so low, right? Give me the money back, why don’t I stop playing?
With a large number of selling orders piling up on the market, the market value of Bitcoin is likely to drop towards US$5,000. For a time, many retail investors cried for their parents and could no longer hold back and chose to sell their chips.
When sell orders accumulate to a certain level, the short sellers are well-trained and move in a uniform manner. They take off the masks of the short sellers and skillfully put on the masks of the bull sellers.
While canceling the sell order he had placed, he placed a series of buy orders in turn, and directly fired up to scan the goods, swallowing up a large number of sell orders in the market in the blink of an eye.
The downward trend that was originally like a landslide and tsunami stopped instantly, like bottoming out, and the market curve instantly reversed its arrow and rushed upward!
