On November 11, Eastern Time, the price of Bitcoin continued to rise, successfully breaking through the $89,000 mark and approaching the $90,000 mark. During this period, the total market value of the global cryptocurrency market also broke through the historical high set in November 2021.
As of now, the latest price of Bitcoin is $85,620 per coin. It is worth noting that in the past 24 hours, the market fluctuated violently, and more than 170,000 people suffered liquidation.
Mr. Li, a Bitcoin investor, said in an interview with reporters: "The recent trend is relatively certain, and going long in the short term is a relatively safe operation." He revealed that he had previously invested $880,000, and despite some losses in the early days, he successfully doubled his funds in the past three days.
However, Ms. Chen’s situation is different. She is facing the dilemma of “assets returning to zero” in recent transactions.
Bitcoin price hits new high
Some people "doubled their assets"
Bitcoin trading volume and market changes are often synchronized, especially before the price rises, and exchange staff are usually the first to perceive the fluctuation. A back-end auditor of a cryptocurrency exchange told reporters: "The cryptocurrency circle has been quite active recently, and our audit team is almost working overtime." He revealed that since mid-October, both account opening audits and transaction flow audits have increased significantly, especially in recent days. The trading volume has more than doubled compared to August.
The exchange staff member further stated that Bitcoin trading is different from other investment methods such as stocks and funds. Most of them are leveraged transactions, especially when the market is rising, investors tend to increase leverage. His platform provides 1-200 times leverage. "I have observed that in the past, under normal market conditions, investors generally increased leverage by 20-50 times, but recently there have been frequent leverage operations of more than 100 times," he said, "which has also caused many investors to blow up their positions." He explained that if the leverage is 100 times, assuming that the Bitcoin price fluctuates by only 1%, investors will quickly blow up their positions due to the leverage effect.
Looking back on his investment history, Mr. Li recalled that he was a finance major and had achieved good results in the U.S. stock and crude oil futures markets. Later, he was influenced by his colleagues and began to get involved in Bitcoin trading. "I am very confident in my analysis and judgment. At the beginning of this year, I was bearish on Bitcoin and persisted for a few days, but as Bitcoin continued to rise, I once lost nearly half of my virtual currency assets." Mr. Li said that despite this, he adjusted his strategy and with some luck, his overall assets have doubled.
Screenshot of Mr. Li's transaction
"I just opened a long contract with 40x leverage. Before closing the trade, I didn't even dare to go to the toilet. I had to keep my eyes on the market and make decisions based on the market trend and my own judgment at any time."
Mr. Xu, who has been trading Bitcoin for more than 6 years, said in an interview with reporters that Bitcoin prices fluctuate greatly, especially when leveraged. If you are bold, it is normal for your assets to double in one day. "I have experienced doubling my assets in one day, but I have also experienced losing almost all my funds in a week."
It is important to note that Bitcoin trading is similar to the traditional stock market, with two main trading methods: long and short. In addition, Bitcoin long and short trading can also be divided into spot trading and contract trading.
Spot trading refers to investors buying or selling Bitcoin at the market price on an exchange, while contract trading refers to traders buying and selling Bitcoin at the contract price.
A major feature of contract trading is that it supports leverage. Investors only need to pay a small portion of the margin to borrow more funds for trading, thereby amplifying their returns. However, this also means that leveraged trading is also accompanied by higher risks. Market fluctuations may allow leveraged traders to achieve huge profits in a short period of time, but may also lead to rapid losses.
Some people's assets have been reduced to zero
The number of people liquidated exceeds 170,000
Regarding the recent rumors on the Internet that people have achieved "wealth freedom" through Bitcoin trading, Mr. Li said: "Bitcoin trading is indeed more likely to make people rich overnight than other industries due to the leverage effect, but it also faces the risk of "returning to zero." He reminded that although Bitcoin and other cryptocurrencies have continued to rise recently, some long investors have gained considerable returns, but those short investors have suffered heavy losses. According to Coinglass data, more than 170,000 people have had their positions liquidated in the past 24 hours, with a total liquidation amount of up to US$651 million.
Ms. Chen also shared her experience in the interview: "Ordinary people can't play this at all. It's too difficult to accept such a large retracement and volatility." She admitted that she had been liquidated three times in the past half month. Every time she felt that the position she chose was very suitable, but the market of Bitcoin was almost "roller coaster"-like, with retracements and rebounds very quickly. Many times she simply couldn't make a decision in a short time.
Ms. Zhao also expressed a similar view: "In this market, the number of ordinary investors who make money is far less than everyone imagines. Often, what we see is just survivor bias." She revealed that she started trading virtual currencies in college, with an initial deposit of $2,000. In less than ten days, her account assets nearly quintupled to nearly $10,000. After that, she continued to deposit funds, but recently due to a misjudgment, her account assets were almost completely lost and her assets were reduced to zero.
Another investor, Mr. Zhao, recalled his own experience of liquidation: "I had liquidation twice before November 8, both times when I encountered a pullback when I was long, and my loss was more than $30,000." He said that due to the use of high leverage and the wrong judgment in the short term, he eventually suffered a liquidation. Due to limited funds, he failed to keep up with the recent market in time and missed the opportunity for a rebound.
Bitcoin is not a product for ordinary investors
Investors should be aware of investment risks
In the short term, Trump's policies and loose monetary policy are undoubtedly the two major "catalysts" for the rise of Bitcoin prices. During the campaign, Trump said that he supported digital assets and promised that if he returned to the White House, he would promote the United States to become the global capital of cryptocurrency, establish a strategic Bitcoin reserve, and appoint regulators who are friendly to digital assets. These policy propositions have strengthened the market's confidence in the future of Bitcoin, and it is expected that under a more friendly regulatory environment, the digital asset market is expected to usher in greater development space.
In addition, the policy shift of major central banks around the world and the loose liquidity environment have also boosted the market's risk sentiment, further boosting the rise of cryptocurrencies. The market generally predicts that the United States may face the risk of rising inflation after the election, which objectively also drives the Bitcoin market.
As for the subsequent trend of Bitcoin, analysts believe that Bitcoin is approaching the key point of $90,000, thanks to the support of US President-elect Trump for digital assets and the possibility that many members of the US Congress may support the future development of cryptocurrencies, which also provides support for Bitcoin prices.
"From a liquidity perspective, the market generally expects that the Federal Reserve may continue to cut interest rates in the future, and loose U.S. dollar liquidity is also good for cryptocurrencies." A cryptocurrency analyst told reporters, "Therefore, there may still be expectations of rising prices in the Bitcoin market in the short term." However, he also reminded that as an emerging investment product, Bitcoin still has high market risks and price fluctuations may be very drastic. Investors need to operate with caution and pay attention to risk control.
I am Danzong, a long-term market hoarder. I don't touch contracts and don't recommend leverage. I make money in a bear market and earn U in a bull market. If you are also such a person, then you are welcome to join Danzong's team (no fees! No promotion! No return!).
Let us go through the bull and bear markets together, keep each other warm, and strive to be a thicker leek.
