This year, the number of institutions investing in Bitcoin has continued to grow globally, indicating that Bitcoin is in a stage of accelerated recognition by global investors, and this acceleration will be passed down like a pyramid, with the base getting larger and larger. This is the reason for this round of Bitcoin's rise, because more and more people are entering this market, and once they enter, they only recognize Bitcoin and have no perception of other currencies. This scenario is very similar to the early stage of the bull market in 2019-2021. At that time, people first recognized Bitcoin, then mainstream coins, and finally altcoins. Therefore, the hype path starting in 2019 was that Bitcoin gradually rose, followed by Ethereum and SOL, DOGE, etc., and finally when the market broke out, altcoins also began to go crazy.

The current market situation is the same, Bitcoin is the only one, and other currencies are motionless like mummies. This means that a group of institutions with large funds have entered the market. Their capital volume can only buy Bitcoin, and they are not clear about the use of other currencies such as Ethereum. Therefore, they bought Bitcoin after entering the market, leading to the current situation. Therefore, if you are a medium- and long-term investor who can endure loneliness, now is a good time to lurk in Ethereum and other mainstream currencies. Holding for half a year to a year will naturally pay off.

There are probably three main functions of options:

First, buy lottery tickets like the above example,

Second, as insurance, use a small amount of margin to hedge the risk of loss in spot or futures,

Third, bet on volatility, by buying different proportions of call and put options, participate in the volatility of Bitcoin in the future. The greater the volatility, the more you earn, and if there is no volatility, you lose the margin.

Contracts and options exist to hedge spot, not for us to open directly! So contracts and spot complement each other!

#BTC下跌分析 $SOL