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Bitcoin hits record high, investors need to be careful: short and long positions are exploding
In late 2020, the cryptocurrency frenzy hits again. Recently, the price of Bitcoin has started a “surge” mode, surpassing the $ 20,000 and $ 25,000 mark in one go, and continuing to hit new highs. Currently, it exceeds US $ 27,000, or about 180,000 yuan a piece.
Bitcoin hits a record
On December 27, the highest price of Bitcoin in intraday trading surpassed $ 28,300. As of the launch of Red Star News on the 28th, it was still reaching $ 27,000 and the overall market value exceeded $ 500 billion. This market value has outpaced the world’s largest finance company VISA (NYSE: V), which has a current market value of $ 430 billion in US stocks. It has the largest and most comprehensive electronic payment network in the world and has more than 2 billion users worldwide.
Short and long sales are winding down
Bitcoin has been on a notable upward trend this year and has become an asset that will definitely benefit from the global epidemic. Since Bitcoin hit a new low of $ 4,705 on March 13, its price has skyrocketed about 6 times. In the last two weeks especially, it has risen from $ 20,000 to $ 28,000, breaking the 8-round mark in one effort.
A few months ago, someone predicted that Bitcoin could exceed 100,000 yuan on social media platforms and was criticized by netizens, but now it has reached 180,000 yuan. In the recent round of Bitcoin’s surge, the once-hot virtual currency community in China has been very deserted, and “walking on air” has become the leading voice.
In fact, the current Bitcoin is similar to the Moutai of A shares, and it is difficult for ordinary people to pay it.Kweichow moutai(600519.SH) At present, even if you only buy one lot, it costs 180,000 yuan, which is similar to the price of one bitcoin. And the stock prices of Bitcoin and Moutai are quite similar – the more unattainable you find it, the more it goes up.
Bitcoin price chart in the last month
It is not terrible to miss the bull market, it is a regret to see Bitcoin continue to rise and join the field of short selling. The “air force” did not expect Bitcoin to have repeatedly set new highs and has no intention of calling back. This has led to a total of nearly US $ 600 million in the contract market in the last 24 hours, or about 3.8 billion yuan. Among them, the loss of the largest short sale order exceeded 65 million yuan.
The “air force” suffered heavy losses. Will the “multiple army” make a lot of money in the money circle? The real situation may come as a surprise, the data shows that the contract market has also cleared $ 316 million in multiple orders in the last 24 hours.
“This is mainly because the price of Bitcoin fluctuates too much, leading to the possibility of liquidation of long and short orders; at the same time, it is easy for Bitcoin to increase leverage, and the leverage can be very large, even reaching at 10 or 20 times the leverage. It’s conceivable. ” A chief analyst at a brokerage firm studied the trend in Bitcoin’s price and noted that, for example, on the night of the 27th, it rose more than $ 28,000, but suddenly fell below $ 26,000 at 5 a.m. Day 28 (Golden Unicorn analyst) US dollars, highly leveraged people can explode in their sleep. The analyst bluntly said that he no longer understands the bitcoin market, and it is more difficult to understand than the stock market, so it is advisable for investors to look far, especially not to increase leverage.
After the dizzying rise, international investment banks added fuel to the fire
The recent hot market for Bitcoin may have something to do with the participation of the payment giants. From the moment that the price of Bitcoin has risen, it happens after the global payment platform PayPal announced that it would support cryptocurrency trading. There are reports that PayPal recently bought around 70% of the newly mined bitcoins. Square, another American payment platform company, also entered the market to scan the products, causing a rapid decline in the supply of bitcoins in the Bitcoin market and continuing to increase prices.
Last week, Tesla CEO Musk also publicly expressed his interest in Bitcoin. Musk said via social media platforms: “The architecture of Bitcoin is perfect and of course there are other currencies. But I’m not quite sure if Tesla’s involvement in the cryptocurrency circle is a good fit.”
Tech mogul Musk’s statement got the cryptocurrency circle excited and investors speculated that Tesla might buy Bitcoin.
At the same time that Bitcoin is booming, analysts at international investment banks are burning oil, predicting that Bitcoin may become the “Tesla of 2021”, and that future upside potential is as high as multiple times. Some analysts even gave ultra-high target prices of $ 74,000 and $ 100,000. The price target given by Citibank is even more outrageous, topping $ 300,000!
Citibank strategist Tom Fitzpatrick analyzed the analogy between the gold market in 1970 and Bitcoin in his latest report “Bitcoin: 21st Century Gold.” The report believes that structural changes in the modern monetary system have led to a world of fiscal indiscipline, deficits and inflation. In view of the fact that countries are printing a large amount of money in response to the new corona epidemic, this will benefit safe-haven assets like Bitcoin that perform well in times of inflation. Tom Fitzpatrick predicts that the price of Bitcoin will exceed $ 318,000 in December 2021.
However, there are also analysts who believe that we should rationally look at Citibank’s crazy bullish vision, and that when institutions turn to bullish Bitcoin, the public should be careful because they often have “ulterior motives”. Nuriel Roubini, an economics professor at New York University, said that cryptocurrencies like Bitcoin should not appear in the portfolios of retail investors or institutional investors. The soaring price of Bitcoin is speculative and this growth is driven by market predators. Maneuver to drive.
In fact, you not only see the stream of Bitcoin skyrocket, it has also plummeted and fallen terribly. Red Star News checked the Bitcoin price chart and found that over the past 5 years, Bitcoin has seen huge ups and downs. Among them, there have been more than 30 cases in which it has fallen by more than 20%. There are many extreme cases of “halving” and when leverage is added it shows the great risk.
Sina Statement: This news is a reprint by Sina Cooperative Media. Posting this article on Sina.com for the purpose of conveying more information does not mean that I agree with their views or confirm their description. The content of the article is for reference only and does not constitute investment advice. Investors trade accordingly at their own risk.
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