Why is BTC reaching new highs while the money in our wallets hasn't changed much? Where has that money gone?
1. Currency Fluctuations: Many cryptocurrency wallets hold not only BTC but also other currencies (such as Ethereum, altcoins, etc.). If the prices of these other currencies do not rise, or even fall, it can offset the gains of BTC, making the overall asset appreciation less noticeable, or even causing a decrease.
2. Exchange and Wallet Fluctuations and Fees: Sometimes, the actual value of digital assets in a wallet may also be affected by fluctuations in exchanges or wallet platforms. Additionally, the miner fees and transaction fees charged during transfers can reduce assets, especially during busy network times when miner fees are high.
3. Trading Losses: If you previously invested in other currencies, you may incur losses due to operational errors, market judgment errors, and other reasons. For example, some users may have bought other currencies at high prices only for those currencies to drop, and this loss will be directly reflected in the total assets in the wallet.
4. BTC and Fiat Currency Value Fluctuations: Although BTC may have reached new highs against the dollar, its performance against other fiat currencies (like the Chinese Yuan) may differ. Exchange rate fluctuations can affect the actual purchasing power of your assets in the wallet, especially when the rise in BTC is less than the depreciation of fiat currency.
5. Illusions or Delays: If you are checking your asset balance through a third-party wallet or exchange, data updates can sometimes be delayed. In this case, the amount in the wallet may not immediately reflect the latest market price of BTC, leading to a discrepancy between the total asset value and the actual market situation. In summary, even though BTC has risen, the other assets in your wallet may not have increased simultaneously, and may even have decreased, or other currencies may have depreciated, and transaction fees may also affect the total amount.