In the bull market, Bitcoin's plunge is like giving away money, or even picking up money. This situation has happened countless times in the past years.

The reason for this situation is very simple, that is, the digital currency market is a purely speculative market where you can increase the leverage to the maximum and no one will care about you. You can become rich and liquidated in an instant.

When good news occurs frequently and the entire market shows a strong bullish sentiment, many people will add extremely high leverage. These extremely high leverage will cause the rising "car" to become heavier and heavier, because high leverage Yes, every time Bitcoin rises by even 10%, it means that the profit of 1 times or even 10 times is urgently needed to be sold.

Since the birth of Bitcoin, it can be said that as long as you don’t add leverage, you will never lose money, because every Bitcoin bull market will reach new highs. Even if you are on the top of the previous bull market, you will be able to do so in the next bull market. Make a lot of money. For example, the bull market in 2017 reached a peak of US$20,000, and three years later in 2020, it immediately exceeded US$69,000.

However, it is always difficult for people to restrain their inner greed. Faced with the temptation of huge wealth, they can't help but want to increase leverage in order to achieve rapid wealth appreciation.

Many people say that Bitcoin is a crazy game, which is a bit ignorant of the facts. On the premise of holding spot currency, the risk and volatility of Bitcoin are even much lower than many A-share large-cap blue-chip stocks.

The A-share GEM and Science and Technology Innovation Board have a daily price limit of 20%, while the main board stocks have a 10% price limit.

In fact, a market capitalization giant like Moutai that is similar to Bitcoin will suffer a sharp drop of more than 20% in a week, and daily fluctuations of more than 10% in Bitcoin are actually rare to encounter a few times a year.

Therefore, those who say that the sudden rise and fall of Bitcoin are risky may have neither speculated in A-shares nor Bitcoin, and they are just starting to speculate based on hearsay.

Moreover, when Bitcoin rose by tens of percent not long ago, the media seemed to pay no attention at all. Now it has dropped slightly and immediately started to "plunge".

This kind of sharp drop is mainly to wash away the high leverage in the entire market, and Bitcoin has rebounded back to half of the drop within a few minutes of the big drop. If there are lucky friends in those few minutes, If you can buy with quick eyes and quick hands, it is almost equivalent to completing a risk-free arbitrage.

It is also worth mentioning that Binance, which has been repeatedly discussed by some media before, has almost escaped the impact of being punished by the United States. Although Jiao Liuqun Jiawei: 1816425885 not only started the listing of new coins, even the platform currency has also risen. The main reason that has made the entire market boil recently is that the Bitcoin ETF is about to be approved by sec. This is regarded by the market as a prelude to the compliance of digital currency investment at this stage. Therefore, many people are betting that Bitcoin will rise rapidly in the near future, such as The USDT financial management of a certain large exchange can reach an annualized rate of 10% under such a crazy market, because there are so many people borrowing U to buy coins.