Overnight, the market value of the cryptocurrency market evaporated by 100 billion, and 300,000 people lost all their money!

This time there are three major negative influences: the Federal Reserve's suspension of interest rate cuts, the consensus in the cryptocurrency circle that it will fall before halving, and the sudden incident last night when Lebanon launched 50 missiles to attack Israel. The war has started again!

I always have a feeling that every time the halving happens, there will be all kinds of weird ghost stories, and they are the kind that I have never imagined, and it happened again this time.

Bitcoin has been rising for 7 consecutive months with a monthly rise. It is normal for Bitcoin to pull back this month. However, after the halving, it is expected to gradually rise from May.

Don’t disbelieve this, no matter how difficult it is, the bull market will definitely start. In 2020, due to the epidemic, cities were closed down and the economy came to a standstill, but Bitcoin still started a bull market. This time will be no exception, it’s just a matter of time.

Bottom-fishing is mainly based on mainstream coins, and small coins can only be spot-fished. Don't add leverage, because there is hope only when you are alive. Before May, everything should be stable. When Bitcoin breaks the previous high again, the bull market will come back.

On the stage of the financial world, Wall Street has always led the flow of capital with its strong influence and keen market sense. In recent years, Bitcoin, as an emerging digital asset, has attracted the attention of Wall Street giants with its unique attributes and huge potential. However, a voice circulating in the industry recently is alarming: "Wall Street will bloodbath BTC, and Bitcoin will become Wall Street's sickle to harvest the world." This article will explore the logic behind this view, revealing the complex relationship between Wall Street and Bitcoin, and the far-reaching impact it may bring. ZJ0306120

1. Wall Street’s involvement in Bitcoin: the beginning of a capital feast

As the price of Bitcoin soars and market awareness increases, Wall Street has shown unprecedented interest in this emerging asset class. Investment banks, hedge funds, asset management companies, etc. have all entered the Bitcoin field and are deeply involved in it through direct investment, launching related financial products, and providing trading services. The following points reveal the close connection between Wall Street and Bitcoin:

1. Institutional investors enter the market

Wall Street giants such as JPMorgan Chase, Goldman Sachs, and Citigroup have begun to provide Bitcoin investment services to their clients, and have even directly purchased Bitcoin as part of their asset allocation. Hedge funds such as Renaissance Technologies and Citadel Investment Group have also entered the Bitcoin futures or spot market. The participation of these large institutional investors has injected huge amounts of money into the Bitcoin market, pushing up its price and increasing market activity.

2. Exchanges list Bitcoin-related financial products

The Chicago Mercantile Exchange (CME) and the New York Stock Exchange (NYSE) have launched Bitcoin futures contracts, providing investors with convenient tools to go long or short on Bitcoin. In addition, several Wall Street-backed special purpose acquisition companies (SPACs) are seeking to merge with Bitcoin mining companies or trading platforms to go public, further broadening Bitcoin's reach in the traditional financial market.

3. Banks and payment giants embrace Bitcoin

JPMorgan Chase, Bank of America and others have begun to provide banking services to cryptocurrency companies, while payment giants such as PayPal, Visa and Mastercard allow users to buy, sell or use Bitcoin on their platforms. These measures have greatly enhanced the practicality and acceptance of Bitcoin and promoted its further integration into the mainstream financial system.

2. The possibility and means of Wall Street's "bloodbath" of Bitcoin

Although Wall Street’s participation has brought capital vitality to Bitcoin, the risks hidden behind it cannot be ignored. When talking about “Wall Street will bloodbath BTC”, the following aspects are usually involved:

1. Market manipulation and price volatility

With their huge financial strength and professional trading teams, Wall Street financial institutions may use market information asymmetry, high-frequency trading strategies and other means to manipulate the price of Bitcoin, create violent fluctuations, and thus realize arbitrage or clean up retail investors. For example, concentrated selling can cause market panic, forcing a large number of holders to sell at a low price, and then buy at a low price to complete the "bloodbath".

2. Leverage effect of financial derivatives

With the popularity of financial derivatives such as Bitcoin futures and options, investors can use leverage to amplify transactions. However, high leverage amplifies the returns while also amplifying the risks. When the market fluctuates violently, leveraged trading may lead to large-scale liquidation, especially for inexperienced retail investors, who may become the target of "harvesting".

3. Uncertainty of regulatory policies

The close relationship between Wall Street financial institutions and policymakers gives them an advantage in dealing with regulatory changes. If regulatory policies suddenly change in the future, such as the implementation of stricter regulatory measures or a complete ban, Wall Street institutions may be informed in advance and adjust their layout, while ordinary investors may suffer losses due to delayed information.

3. Bitcoin: A global capital feast or a scythe for Wall Street?

Faced with the complex relationship between Wall Street and Bitcoin, we should objectively view the opportunities and challenges it may bring:

1. For sophisticated investors and institutions

Bitcoin provides new asset allocation options and trading opportunities, which helps to diversify risks and capture excess returns. At the same time, the participation of Wall Street will also help improve market efficiency and promote the standardized development of the industry.

2. For ordinary investors and emerging market countries

We must be alert to possible manipulation, high leverage risks, and policy uncertainties in the Bitcoin market. Before investing, we should fully understand the market rules, do a good job of risk control, and avoid blindly following the trend. For emerging market countries, we need to pay attention to the risk of capital outflow and prevent Bitcoin from becoming a tool for Wall Street to harvest capital.

In summary, Wall Street's involvement in Bitcoin has undoubtedly brought new changes to the global capital market. On the one hand, it has provided a strong impetus for the rise of Bitcoin and promoted its further integration into the mainstream financial system; on the other hand, the market manipulation, high leverage risks and regulatory uncertainty it may bring have also sounded the alarm for investors. In this arena where the capital feast and the "scythe" coexist, investors should remain rational and fully understand the risks in order to cope with future market fluctuations and changes.