Recently, Bitcoin prices continued to rise, reaching new highs, at one point breaking $99,000, and other cryptocurrencies also gained strength. According to Coinglass data, in the last 24 hours, over 140,000 people in the virtual currency market were liquidated, with a total liquidation amount of approximately $423 million.
Bitcoin breaks $99,000, over 140,000 people liquidated. Recently, Bitcoin prices surged, once breaking $99,000 and reaching a new high. As of the time of writing, the price of Bitcoin is $98,683.8 per coin.
Coinglass data shows that amid severe volatility, over 140,000 people in the virtual currency market were liquidated in the last 24 hours, with a total liquidation amount of approximately $423 million (about 3.065 billion yuan), including $210 million in long liquidations and $210 million in short liquidations.
Multiple news factors are influencing cryptocurrency trends. On the news front, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, announced that he plans to resign from his position on January 20, 2025. During his tenure, he implemented strict regulatory measures on cryptocurrencies and targeted the crypto industry. Due to his strong regulatory stance on cryptocurrencies, he has been labeled as the 'public enemy of the crypto world.'
After Gensler announced his resignation, the cryptocurrency industry generally welcomed it, stimulating Bitcoin prices to rise further.
Moreover, the market generally believes that Trump's supportive attitude towards cryptocurrencies and a more relaxed regulatory environment will help the industry's development. Trump has repeatedly expressed a friendly attitude towards cryptocurrencies, believing they have future potential, especially in terms of inflation resistance and asset protection. After Trump took office, market optimism about the cryptocurrency industry increased.
Notably, as Bitcoin prices rise, Bitcoin ETFs have also started attracting capital. According to relevant data, the total assets of ETFs directly investing in Bitcoin in the U.S. exceed $100 billion.
Regarding the future trend of Bitcoin, American billionaire and well-known cryptocurrency investor Michael Novogratz recently stated that Bitcoin will inevitably break the $100,000 mark, but may then decline by as much as 20%. He believes that the leverage in the cryptocurrency community has reached its limit, leading to an adjustment, and that stocks and ETFs with concentrated leverage will also face difficulties. Investors should be vigilant about potential risks such as market volatility and regulatory uncertainty, and take corresponding risk management measures.
Bitcoin surges, 'shadow stocks' also soar
Citron short selling
Bitcoin surges, leading to a boom in 'Bitcoin shadow stocks'.
The listed company MicroStrategy (MSTR), which holds a large amount of Bitcoin, has become the strongest 'Bitcoin shadow stock'.
Under the leadership of MSTR CEO Michael Saylor, the company spent heavily on purchasing Bitcoin, sometimes even financing through debt issuance, rapidly rising with its 'Bitcoin strategy'. MSTR has almost become synonymous with Bitcoin, being a shadow stock of Bitcoin.
Famous financial commentator and gold advocate Peter Schiff believes there is a positive feedback loop between MSTR's stock price and Bitcoin investments; the higher the stock price, the more shares the company can sell, and the more shares sold, the more Bitcoin can be purchased, leading to rising Bitcoin prices.
Wall Street Journal mentioned earlier this week that on Tuesday, November 19, MSTR's stock price soared 11%, surpassing the combined market value of the world's two largest gold mining companies, Newmont Gold and Barrick Gold. However, on Thursday, during intraday trading, MSTR's stock price plummeted, falling 31% from its daily high.
MSTR continued its previous surge on Thursday morning, with the stock price at one point rising 14.6%, reaching an all-time high of $543, but then rapidly declined, falling more than 21% from the daily high, and down 10% from Wednesday's closing level.
After that, MSTR's intraday decline narrowed somewhat, but continued to fall for over an hour before closing, dipping below the early session low.The intraday low retracted more than an astonishing 31% from the day's high.Ultimately, MSTR closed down over 16%.
As of Wednesday's close, MSTR has accumulated a 650% increase this year. As of Thursday's close, MSTR still has an increase of nearly 530% year-to-date.
From a historical high to a typical 20% technical bear market, MSTR took only one hour. For a company with a market value just exceeding $100 billion, a decline of over 30% from its historical peak can happen in a single day. Citron Research claims that MSTR has effectively turned itself into a Bitcoin investment fund and holds great respect for MSTR CEO Saylor, but even he must recognize that MSTR is overheated. Citron states:
Now, as investing in Bitcoin has become easier than ever, MSTR's trading volume has completely detached from Bitcoin's fundamentals. Although Citron remains optimistic about Bitcoin, we have hedged by shorting MSTR positions.
The soaring stock price of MSTR has also raised concerns among some other investors. From a fundamental perspective, MSTR's market value is nearly three times the value of the Bitcoin it holds, meaning MSTR investors are effectively paying $250,000 for each Bitcoin, while the market price is less than $100,000.
On the other hand, with the launch of Bitcoin ETFs, investors can buy these ETF funds directly without having to invest indirectly through MSTR's stock.
All music must stop, and all dances will eventually end.#比特币突破10万？
