Volume 4 Crazy Growth 2017 Chapter 825 Others are afraid of me, but I am greedy
As a market with 24-hour non-stop trading, it is inherently dominated by market sentiment. Any news, whether negative or positive, will be directly reflected in the market. There is no time difference, no buffer, and no limit on price fluctuations!
Therefore, when the "Seven Swordsmen from the East" came out, panic spread throughout the entire Bitcoin market in an instant, and a large number of retail investors and investors from China responded by selling their stocks, almost without hesitation.
After all, the vast majority of investors from China have more or less enjoyed the dividends brought by favorable policies, and even their first pot of gold or the process of original accumulation have benefited from the policy tilt.
Therefore, naturally, we develop a strategic thinking inertia, that is, if we follow the policy, we can have a meal, but if we go against the policy, we will often end up with nothing and may end up losing both our money and our life.
As the old saying goes, "Those who follow the will of heaven will prosper, and those who go against it will perish."
In this bull market, Chinese investors have played an indispensable leading role in the market, and the three major exchanges in China have benefited greatly from it.
However, along with this ban, there was also a notice ordering the three major exchanges to shut down their domestic businesses within ten days. The so-called notice basically meant that there was no room for negotiation.
Even the heads of the three major exchanges have been asked not to leave the country without permission in the short term. This is enough to show the determination of the authorities to rectify virtual currencies.
At the same time, such decisive and swift actions are often long-planned. As for when the plan was started, or why the decision was made...
Naturally, it is unknown what will happen to this kind of thing, and the market does not care about it. Once such a piece of information, which is considered to be a major negative news, is spread, the market's reaction is always immediate .
Bitcoin, which had once surged to US$4,591, suddenly fell, leaving a deep hole on the market, and plunged directly towards the US$4,000 mark, plummeting by -12.97% in an instant!
There was no suspension of trading, nor was there any mention of a price limit. When a large number of Chinese investors made the same decision to sell in the face of the policy, the force of the market crash was no less than that of the market makers in the ordinary market.
Even worse than that!
In addition, in this market that allows short selling, many short sellers heard the news and rushed to short Bitcoin on a large scale. If the market is in jeopardy, then the short sellers never shy away from wanting to be the straw that breaks the camel's back.
They will even escalate their aggressiveness without hesitation and will not stop until every last drop of blood in the market is squeezed dry.
However, despite such a major negative news, which once severely hit the market value of Bitcoin, the battle between bulls and bears has always been the main theme that dominates the market.
Although the policy changes from China have led to the departure of the main force of Chinese investors, it is impossible that there is only one main force in such a large market.
In particular, there will never be a shortage of speculators who go against the current in the market. They are well versed in reverse thinking and regard the famous sayings of the stock god as their guiding principles.
"When others are greedy, I am fearful. When others are fearful, I am greedy. When others liquidate, I increase my position. When others suffer a small loss, I make a huge profit!"
Adhering to such a simple and crude principle, when someone sells, someone else will buy. For a while, the bulls turned into madmen, buying like crazy, which somewhat stopped the market's desperate mood.
When the bulls and bears were in a standoff, the panic in the market dissipated a little, so that some investors who were late to the party were no longer in a hurry to sell their shares, but chose to sit on the sidelines and wait and see, just in case there was a turnaround?
At the same time, Lu Sifang, who was far away on the other side of the ocean, had just gone to bed, but when the price fluctuation of Bitcoin touched the warning line, not only the software would give feedback, but even the hardware notifications were no less.
The on-duty personnel arranged by Lu Sifang to monitor the market naturally reported the market situation to Lu Sifang as soon as possible.
Upon hearing this news, Lu Sifang no longer felt sleepy at all. He was suddenly startled. His hometown had suddenly sent a strong medicine without any warning.
The big one is coming!
As one of the vested interests, the first thing that came to Lu Sifang's mind was whether he should take profits and leave immediately. After all, his gains so far were considerable enough, and there was no need to take the risk of a possible large drawdown...
After all, the floating profits on the books are just virtual. Only when the profits are truly in the pocket can they be real gains. Lu Sifang naturally knew this truth.
However, although his own interests were involved, which somewhat affected Lu Sifang's judgment, he was a man who had seen many storms and would not panic.
After calming down a little, the first person Lu Sifang thought of was naturally his boss. In addition to reporting to his boss immediately, he could also adjust subsequent strategies based on his boss's reaction.
If the boss wants to sell, then Lu Sifang will follow suit without hesitation. If not... then it proves that there may still be room for things to turn around!
After all, in a market with no limits on price fluctuations, if the impact of China's policies is really that great, then the drop should not be just twelve points. Even if it directly loses half of the market value, it is not incomprehensible...
So, when it was still late at night on the other side of the ocean, Lu Sifang called Zhou Dongsheng.
Zhou Dongsheng was naturally not surprised when he received the call. After all, even Lu Sifang on the other side of the ocean had received the news, so it was impossible for Zhou Dongsheng, who was in China, not to know about it.
I didn't expect that eating melons was fun for a while, but as I was eating, the fire actually burned myself. Zhou Dongsheng couldn't help but sigh in his heart.
The occurrence of such an unexpected incident completely touched upon Zhou Dongsheng's blind spots in knowledge!
Although as far as he could remember, Bitcoin trading would indeed be banned in China in the future, Zhou Dongsheng did not know exactly when it would be implemented.
What I didn’t expect was that this “future” would come so quickly and actually arrive right away?
From the perspective of "anything is allowed unless prohibited by law", this ban undoubtedly declares that Bitcoin has no place in the country and completely blocks its circulation in the country.
From a conventional perspective, this is almost the same as unilaterally declaring him dead.
To be honest, as one of the investors who holds a large amount of Bitcoin, Zhou Dongsheng felt a little flustered when he saw the news.
It is not an exaggeration to describe it as a "pupil earthquake". For a moment, there was even a sense of suffocation.
However, after coming to his senses, Zhou Dongsheng calmed down a little. Just like a drowning person grabbing a life-saving straw, Zhou Dongsheng also grabbed that life-saving straw in his heart.
Zhou Dongsheng vaguely remembered...the value of Bitcoin was far more than that. In the future, it might even reach tens of thousands of US dollars per coin. Although he couldn't remember the exact amount, he still remembered this sky-high price clearly.
After all, when converted into RMB, the price of one Bitcoin was once enough to exchange for a Mercedes-Benz or BMW. This also caused a lot of heated discussion at the time and became a hot topic of discussion among the whole nation.
It was also during this stage that Zhou Dongsheng initially established his understanding of this virtual currency and was amazed by its value, which left a deep impression on him.
Just like the national liquor Moutai, even if you don’t remember its specific value, you can still vaguely remember its crazy rise in the future, and the liquor fund has become the most eye-catching chicken in the market.
This memory point, which is like an anchor point, is exactly the part of the future that Zhou Dongsheng knows.
So when he realized this anchor point, Zhou Dongsheng calmed down again. If Bitcoin can't even overcome the current hurdle, how can it possibly reach the top in the future?
Even if this is the end of this wave of Bitcoin bull market, it doesn’t matter to Zhou Dongsheng. Perhaps he can take this opportunity to continue to collect low-priced chips and bet on the future.
The worst that can happen is just playing the long game to catch a big fish. Judging from the value investment mindset, the value of the entire market will not collapse just because of this variable of yours, right?
This butterfly effect is too exaggerated. Zhou Dongsheng himself does not have the confidence that he has such great ability.
So after calming down and analyzing the causes behind the policy, Zhou Dongsheng felt from his own perspective that this might just be a move by the higher-ups to further tighten outflow channels?
After hitting Yida, the first to stand out, the virtual currency market, which has been in the spotlight recently, naturally also ran into the crosshairs. After all, this so-called decentralized virtual currency can perfectly bypass the regulatory system and easily complete asset transfers.
Moreover, it is undoubtedly more efficient than traditional channels in terms of cost and efficiency. In the past, when the value was not high and the market was not so active, we could wait and see.
Seeing that the water in this channel is flowing more and more, we naturally can no longer stand idly by, and it is not difficult to understand why we have to take action to close it.
Therefore, from Zhou Dongsheng's perspective, he subconsciously associated Yida with Bitcoin, and ultimately came to the conclusion that he should tighten the channels for overseas investment and be cautious about risks...
When thinking about this, at least for Zhou Dongsheng, it makes logical sense.
However, if Zhou Dongsheng in his previous life had known where this incident occurred, he might not have come to this conclusion.
After all, the ban was issued three months earlier than before! This acceleration in time was obviously due to the influence of certain variables.
If Zhou Dongsheng knew this, then he might have a better understanding of his own abilities.
Although he doesn't have as much ability as he imagined, his current ability should not be underestimated.
It may not have much impact on the main roads, but on other relatively narrow branch roads, it has enough weight to influence the market direction.
After Zhou Dongsheng sorted out his thoughts, he had enough confidence to reply to Lu Sifang.
"Don't panic, it's not a big problem. The market may fluctuate and fall due to the crazy counterattack of the bears, but it will not affect the subsequent market trend. Although you can take this opportunity to do some short-term arbitrage..."
"But now our goal is too big. If we blindly follow suit, it may further collapse market sentiment. There is no need to throw away the low-priced chips in our hands for the sake of the current small profits. Once thrown away, we may not be able to get them back."
"But we can take advantage of the situation and collect some chips. I believe the market will adjust soon. I still think there is a lot of room for improvement in the future."
Zhou Dongsheng spoke slowly and clearly, expounding his views to the point. His firm tone dispelled Lu Sifang's doubts and made him feel at ease.
The boss is not panicking even though he has a large position in the company, so why should I be panicking?
"I understand, Chairman. With what you said, I now know what to do!" Lu Sifang said with high morale.
"Well, keep a close eye on the subsequent changes and notify me if there is any news." Although he had a firm grip on his mind, Zhou Dongsheng still added a sentence with concern and then hung up the phone.
As expected, after the market experienced the initial panic sell-off, it gradually stabilized its downward trend and did not become the irreparable situation imagined.
When the market calmed down a little, some investors began to re-examine the Bitcoin project and suddenly had a more intuitive understanding of its self-proclaimed selling point of "decentralization".
If even the ban from the world's second largest economy cannot effectively damage the value of Bitcoin, doesn't that prove from the side that "decentralization" is valid?
Vice versa, if a country cannot even withstand the sanctions from the world’s second largest economy, then the concept of “decentralization” is nothing but a castle in the air, and its value is ultimately directly affected .
This is undoubtedly the foundation of Bitcoin's value. As the saying goes, real gold is not afraid of fire. At this moment, whether investors who have already entered the market are choosing to wait and see, it has also attracted the attention of some interested people outside the market.
Whether it is a mule or a horse will be clear after taking it out for a walk, and whether it can withstand this wave of sanctions head-on is undoubtedly a direct reflection of Bitcoin's ability to resist risks.
If Bitcoin proves its ability to resist risks and even the sanctions from the world's second largest economy cannot affect its liquidity in the market, it will undoubtedly greatly enhance the confidence of outside investors.
At the same time, its own value will be further recognized. In this way, this bull market of Bitcoin will not only not come to a conclusion, but will instead accelerate again after the adjustment is completed!
Perhaps it is true that there are opportunities hidden in crises.
Therefore, when the entire market was in turmoil due to this ban, the market value of Bitcoin not only did not plummet under the tug-of-war between bulls and bears, but it even slightly restored market sentiment and the market value slowly recovered.
In the end, the single-day decline was only -7.74%, which not only did it fail to fall below the US$4,000 mark, contrary to market expectations, but it even held the US$4,100 mark.
Of course, this is obviously just the beginning. It is not difficult to predict that in the next period of time, the bulls and bears in the market will engage in rounds of fierce confrontations.
