Chapter 489 [Directly reload the warehouse and go in and let the grass mud horse die.]
Chapter 489 [Just go in with an empty warehouse and the horse will die]
Author: Zhaolingsiyu
Chapter 489 [Just go in with an empty warehouse and the horse will die]
As the Mt. Gox trading platform, which had been closed for six days, resumed again, the price of Bitcoin plummeted from $17.5 to $14 at the opening, with a price drop of -20%, and it was shorted at the opening.
After the hacker attack, the ambiguity of the Mt.Gox platform management team gradually made everyone panic. Some speculators saw the "opportunity" to make a lot of money by shorting.
The current Mt.Gox platform also provides short selling tools.
But the short players were not happy for even half a minute and were soon dumbfounded.
After the price of Bitcoin fell to $14, it immediately started a short squeeze.
This trend is like pulling onions on a dry land, with the price of Bitcoin rising by 8 US dollars in one breath, from 14 US dollars to 22 US dollars.
Not only did it reverse the previous -20% decline, but it also surged by +25.71%, rising from the bottom price of $14 to +57.14%.
This trend has completely wiped out the funds of the short side. In just a few seconds, a large amount of floating profits were swallowed up and the floating losses continued to expand.
Being shorted is actually more terrifying than short selling, because the price increase is unlimited.
Once you are short-squeezed, you will either need to make a margin call or buy chips from the market at a higher price to close your position and admit your losses.
If the short position was opened at $17.5 and now rises to $22, the short seller's book floating loss rate will immediately reach -32%, and this is without adding leverage.
If leverage was added, the position would have been liquidated long ago.
If you close the position and stop the loss at the current price of 22 US dollars, then the -32% floating loss will immediately turn into an actual loss. If you don't want to close the position, you need to add a margin.
But what if it is further squeezed?
Floating losses will further expand, and margin calls must be continuously made to avoid being liquidated.
The actual situation is that the vast majority of bears do not dare to be stubborn and rush to close their positions and stop losses. Everyone has seen the violent fluctuations in the price of Bitcoin. Anyone who dares to be stubborn will have their wallets reset to zero.
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As short-selling funds close positions and stop losses, chips need to be bought from the market to close positions, so chips become more popular, further pushing the price of Bitcoin upward, thus forming a positive feedback effect.
The horror of being short squeezed lies in the strengthening of this positive feedback: because you want to close your position, you have to buy chips from the market, you are eager to close your position and stop the loss, and you are willing to pay a high price, and then all the short parties start a run-like rush to close your position.
chips, causing prices to skyrocket further, and then intensifying panic and making people more eager to close positions and sell high prices to quickly stop losses...
After Fang Hong's trading team set up the "rhythm", they now don't have to do it themselves to push prices up. The market sentiment is self-reinforcing in the positive feedback, constantly pushing up prices.
The price of Bitcoin soon soared all the way to $27.9, with the increase expanding to 59.43%.
The short position was wiped out, and the money lost was naturally transferred to the long position, and the long position made huge profits.
After being squeezed short by the market, the previous short positions also turned long.
It's just gambling anyway.
With such violent price fluctuations, normal investors will definitely not and dare not reach out. 99% of the participants who dare to come in and play have a gambler mentality and a mentality of getting rich quickly. They want to take a chance and turn their bicycles into motorcycles.
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Finally, the price of Bitcoin closed at $26.8 today, up +53.14%, and the amplitude reached 79.73% throughout the day.
…
On the second day, the price trend of Bitcoin fell back by 10 percentage points, a drop of 10 percentage points. In the face of the price fluctuation of Bitcoin, it can only be called a rebound. In the case of Big A, it directly fell to the limit.
After falling back by 10 percentage points, Bitcoin's trend has once again exited the short squeeze market.
It continued to rise in shocks until it reached the highest price of the day at US$43.7, hitting an intraday increase of +63.06% before stopping. The previous secondary high of US$41.2 hit on June 8 was broken today.
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Finally, the price of Bitcoin closed at $41.5 today, a sharp increase of +54.85%. It had a positive line of more than 50cm in two days, and the cumulative increase doubled by +137%.
What is certain is that the skyrocketing price of Bitcoin is definitely not a good thing for the Mt.Gox trading platform. The last thing that wants to see a skyrocketing price now is the Mt.Gox trading platform, which has lost 750,000 Bitcoins from its users.
If the compensation was based on the previous price of 15 US dollars, the theoretical compensation would be 11.25 million US dollars, but now the price has skyrocketed to 41.5 US dollars, and the amount of compensation has also skyrocketed to 31.125 million US dollars.
Mt.Gox will either recover the Bitcoins or lose money at the corresponding price.
But the 750,000 Bitcoins lost to users and the 100,000 Bitcoins held by the platform have disappeared. Now it is truly decentralized.
…
On June 28, the price of Bitcoin was shorted again, recording the largest intraday increase of +27.27%. The highest price reached US$52.82, breaking through a record high, and the market value soared to US$1.109 billion.
The currency circle is booming now, and all major forums and communication groups are very popular, both domestically and abroad.
[Niubi, a record high!]
[Twice in three days!]
[It’s either skyrocketing or plummeting, really crazy.]
[My little heart can’t bear it.]
[I really don’t see the value of this thing, why it is so popular.]
[After walking around in the currency circle, Big A’s heart has not fluctuated even though it has hit the limit... (face covering.jpg)]
[Shit, someone is going to be buried, run!]
[The cost is Nima 52, and the quilt cover is 15 points!]
[Hurry and cut the meat and go to sleep, be careful to return to zero.]
[Bottoms hit, run!]
[Just go in with an empty position and the horse will die.]
…
After rising to a price of 52.82 US dollars, the price of Bitcoin quickly staged a shocking plunge, all the way down to a price of 35.8 US dollars, with an increase of +27.27% turning into a sharp drop of -13.73%, and a drop of -32.22% from the current historical high.
many.
At the same time, the power of short selling is getting stronger and stronger, because more and more people think about the sudden collapse from $52 to $3.6 on June 8.
However, short sellers found that after the price of Bitcoin fell to 35.8 US dollars, it could not survive. The trading volume continued to increase, and the latest price also fluctuated in a narrow range around 36 US dollars.
About ten minutes later, the bullish and bullish plunge expected by the bears did not happen, and instead began to rise sharply.
The price of Bitcoin hit a bottom of 35.8 US dollars and then surged all the way up. It rose straight up and closed in the red. It quickly broke through the previous day's high of 52.82 US dollars and hit a new all-time high, further continuing the short squeeze.
Players who have opened short positions with heavy positions feel their scalp numb. Every few seconds of hesitation, the losses are increasing.
The price of Bitcoin broke through the previous high of the day and then rushed to new highs: 55 US dollars, 60 US dollars, 67 US dollars, 70 US dollars, all the way to a height of 71.52 US dollars, setting the largest intraday increase of +72.33%, and the nominal market value exceeded 1.5 billion.
The height of the dollar.
It finally closed at the price of 68.51 US dollars, a sharp increase of +65.08% that day. Those who were short were cut off, and those who were long were profitable. This trend of Bitcoin has repeatedly raised the upper limit of the excitement threshold of participants.