Volume 4 Crazy Growth 2017 Chapter 828 It’s time to harvest
The tense tug-of-war between bulls and bears has kept the entire market in a delicate state of balance. Although the market value of Bitcoin has continued to fluctuate and decline, it has firmly held the bottom line of US$4,000 for several consecutive days.
Being able to maintain such a relaxed attitude in the face of such major negative news is simply a shot in the arm for the entire market. The prospects are infinitely bright, making a group of retail investors full of confidence.
However, the baton of market turning point is always handed over quietly. The continuous rise in trading volume for several days is certainly due to the influx of a large amount of hot money in the market...
However, this also means that some people chose to take profits and leave the market, continuously selling off their chips. Otherwise, the market value of Bitcoin should have risen to the sky contrary to its norm.
However, in recent days, the entire Bitcoin market has fallen instead of rising. The trading volume has increased day by day, but the market value has continued to fluctuate and decline, and the profit has fallen by more than ten points compared to the highest point.
This also means that if retail investors enter the market at high prices, they will all be trapped at the top of the mountain without exception, or they will buy at the bottom halfway up the mountain.
I was trapped right after I bought in, but for retail investors, being trapped is normal. It would be strange if the price went up right after I bought in, so naturally I chose to wait and see without any panic.
Although market sentiment has been slightly divergent over the past few days, the stable market value undoubtedly means that everyone still agrees on the value of Bitcoin. Once the divergence turns into consensus...
Then it is only . After all, it is a unique benchmark in the virtual currency market and is known as digital gold. It has strong risk resistance and value preservation capabilities.
Even the price of gold will experience ups and downs, let alone Bitcoin?
Don't panic, it's just a technical adjustment!
However, it is indeed just as retail investors expected, except that they were only half right. The differences have indeed turned into consensus, but this consensus is that the bears have the upper hand.
Regardless of whether you are on the short side or the long side , you undoubtedly need chips to make a profit. After all, the so-called short selling is also a means of selling high and buying low to earn the difference.
In terms of operation, it is just the opposite of going long. Going long means buying at a low level, being optimistic about the future market, and waiting for the market to go up before selling the chips in hand to make a profit.
Short selling, on the other hand, reverses the order. The operating logic is that the market is expected to fall in the future, so a part of the chips are borrowed first, sold at a high price, and then the market is waited for to fall. Then, the low-priced chips are bought back within the specified time to make a profit from the difference.
It is not difficult to understand logically. It is just like a loan, except that a loan is for funds, while short selling is for chips.
Loans require margin, and so does short selling. As long as there is enough margin, it is not difficult to find an institution in the market that is willing to lend chips.
If you have the money but don't make it, you're a bastard. Short selling can also be seen as a betting agreement. Once the bet fails and the short side is liquidated, the margin will naturally be gone.
This kind of operation also fully demonstrates the profit-seeking nature of capital. Therefore, in principle, short selling is not allowed in the domestic financial market.
Ahem, it can also be understood as a protection mechanism for the novice village, but there are always more solutions than difficulties, and short selling can also be achieved through securities lending.
Compared with the relatively conservative view on short selling in China, the short selling tools in overseas markets are much more unscrupulous. Under the dominance of profit-first thinking, no one cares about what happens in the market, the only thing that matters is to secure the profits.
Under the stimulation of the negative news of China's ban, both the bulls and bears have reached a tacit understanding imperceptibly.
Whether it is a speculator who wants to cash out at a high price, a short seller who urgently needs low-priced chips, or an investor who is still bullish on the future prospects of Bitcoin.
Everyone undoubtedly has the same demand for low-priced chips. What's more, the bulls and bears are not as clearly distinguished as the difference between men and women. It is just a widely known saying in the market.
Nowadays, even gender can be changed, let alone the long and short sides? Even if you are optimistic about the future prospects of Bitcoin, it does not prevent investors from taking advantage of this bad news and shorting to make a profit.
It’s called risk hedging!
It’s time to show off and stop pretending. The bulls took off their hoods and perfectly integrated into the bear camp without seeming out of place at all.
When a short-selling force is formed in the market and the willingness of the long parties to take over is not strong enough, the market will naturally experience a cliff-like decline!
Bitcoin, which was still able to maintain at US$4,100 a second ago, suddenly plummeted and went straight down to US$3,882. However, it fell by more than 6 points in the blink of an eye. However, the momentum of the short-side counterattack was so strong that even the market could not react.
It seems as if there is a bottomless abyss below. Although there is a lot of hot money in the market trying to buy at the bottom, it is obviously difficult to stop this avalanche trend.
3800 USD, 3600 USD, 3400 USD, 3200 USD…
Whenever you think that this is the limit, the market always breaks through the lower limit in unexpected ways, and this market without any limits on ups and downs also opens its bloody mouth for the first time.
This gave a little shock to many retail investors and speculators who tried to buy at the bottom but ended up failing halfway up the mountain!
In just one trading day, Bitcoin lost a quarter of its market value, a large negative line of -26.59%, which stunned the entire market.
In this avalanche-like downward trend, countless retail investors cried and screamed, frantically selling their stocks, and countless others were liquidated, left with no tears in their eyes as they faced the reality of losing all their money.
The way the cryptocurrency circle cuts leeks is to uproot them without any mercy, which vividly demonstrates the cruelty of the law of the jungle and teaches many retail investors a severe lesson.
It's just that the tuition is too expensive. In comparison, isn't Big A just as gentle as the Novice Village...
Of course, the main theme of the market is always that when some people cry, others laugh; when some people lose, others naturally make money.
This drop of nearly 30 points is naturally a big profit for the bears, but seeing that Bitcoin has fallen below the US$3,000 mark, the downward momentum is too strong.
If we use too much force all at once and completely destroy the market sentiment, how can we deceive latecomers into taking over?
For this reason, the bears took off their hoods and put on the masks of the bulls, and began to take action to restore market sentiment. A large amount of funds began to flow into the market, sweeping up the low-priced chips in the market.
Long parties can short sell to hedge risks, and the same is true for short parties. As I said before, the world is never black or white, but a delicate gray.
Many retail investors who had just reluctantly chosen to cut their losses watched helplessly as the curve on the market turned a corner and started to rise in the opposite direction. They could not help but stare with anger and their eyes were bloodshot.
"You dog dealer, I%￥&#@%＊..." Apart from feeling dejected and mad with anger, there seemed to be no other way.
To a certain extent, rules are created to protect the weak and check the strong. Even so, in a regulated market, driven by interests, there is no shortage of behaviors that test the bottom line of the rules.
What's more, in this so-called decentralized market, without the constraints of rules, some means are naturally more unscrupulous.
When most retail investors and investors first come into contact with the concept of blockchain, they are like Ye Gong who loves dragons very much. They are full of yearning for the so-called true free trade. However, when they really face it, they may suddenly realize it.
What are the consequences of unrestricted freedom?
With a wave of strong rise, the daily trading volume of the Bitcoin market once again broke a new record, directly reaching a peak of 4 billion US dollars. Under such a huge amount of funds, the market value of Bitcoin also experienced a wave of ups and downs.
It directly rose by 15 points, raising the market value from US$2,946 to US$3,637. Although it did not completely restore the market sentiment, such a wave of ups and downs in the market performance played a more direct role than any advertising effect.
The topic of Bitcoin not only topped the charts on overseas social platforms, instantly attracting the attention of countless retail investors, but it was also active even in the domestic market where it has been banned.
Among them, on the Weibo platform, the two topics of "Bitcoin plummeted" and "Bitcoin surged" alone were on the hot search list one after another. With the help of the hot search list, many people paid attention to the existence of this virtual currency for the first time.
Even though the authorities have ordered the three major exchanges to shut down their domestic trading businesses and explicitly banned their circulation in the country, just like the existence of the wall, it has never been a problem for those who are interested .
This is more like a two-way selection mechanism, just like a disclaimer. Anyway, I have played the role of persuasion. If you still insist on doing so, you can only bear the risks at your own risk.
However, after experiencing such a series of ups and downs, it is obviously impossible to restore market sentiment in a short period of time. It will take some time for the situation to slowly ferment.
This process, of course, cannot be rushed, and at the same time, Lu Sifang also gave a brief report to Zhou Dongsheng in high spirits.
With Zhou Dongsheng's words setting the tone like a stabilizing force, Lu Sifang felt at ease and fully fulfilled his duties as a trader, playing a role in fueling the ups and downs of this market.
With the advantage of holding millions of chips, no matter which mask he wears, he is enough to play an important role in this dark market.
Even if you just follow the trend, you can still make big profits with the market, create a considerable wave of profits on the books, and slightly reduce the cost of building a position!
For funds of this size, even if the cost is reduced by just US$1, it can generate nearly US$1 million in additional profits. This is the advantage brought by the amount of funds.
The snowball always gets bigger and bigger.
“After this round of turmoil, as market sentiment recovers, the market should see a slow bull run. In the long run, the value of Bitcoin will surely be stable and improve. You should pay more attention to it and keep a close eye on it…”
"You did a good job this time. I'll give you a credit." Zhou Dongsheng gave him a light verbal encouragement. He had already given him enough benefits and there was no need to give more every time.
After all, human greed is insatiable. Zhou Dongsheng doesn't know how he would feel if he ended up with a situation where he was overwhelmed by gratitude.
"This is all thanks to the chairman's wise decision. I have only done my job and I dare not take credit for it!" Lu Sifang said righteously.
"Okay, that's it." Zhou Dongsheng hung up the phone happily. After watching such a big show, he couldn't help but make a brief summary in his heart.
Given his limited knowledge of the entire Bitcoin market, Zhou Dongsheng believes that perhaps this bull market in Bitcoin has come to an end. If it wants to rise again, it may take a longer time to brew.
Only when the entire market has reached enough consensus will there be a chance to hit a new high again. As for when this time point will come, even Zhou Dongsheng is completely clueless about it.
All we can do is wait and see. No matter what other institutions do, Zhou Dongsheng will not give up the chips in his hands. He has firmly tied himself to the Bitcoin ship and will never let go easily until he reaches the anchor point in his memory.
If someone of his weight could sink the ship... then Zhou Dongsheng would have nothing to say. To some extent, isn't this also an achievement (funny)?
The 300-pound butterfly effect...even blockchain can't stop it!
The fruits planted far away on the other side of the ocean have obviously not yet reached the maturity period for harvesting, but if we turn our attention back to the domestic market, the shared bicycle market at this moment has undoubtedly entered the most crazy stage of maturity.
Especially with the strong entry of the two Internet giants, Tencent and Alibaba, to support Mobike and Ofo, the former used the social platform, an invincible killer weapon, to fully open up Mobike and inject a strong momentum into it.
In just one month, Mobike added more than 24 million new users, directly shortening the gap between it and ofo, and the two continue to move forward in parallel.
On the other hand, Ofo is not weak at all. After being directly connected to Alibaba's credit system, it has launched its killer feature of no deposit based on credit, and has also won a strategic investment in its D round from Ant Financial!
There is no doubt that the strategic significance of this investment far outweighs other things. With Alibaba's credit system as endorsement, Ofo can directly skip the market stage of accumulating user credit and continue to expand wildly.
At the same time, with the support of its wealthy sponsors, Ofo has maximized its low-cost advantage and started a global siege mode, directly completing the achievement of 100 cities and becoming the shared bicycle platform with the most cities in the world!
At the same time, in a list of the world's most valuable technology start-ups released by a well-known overseas venture capital institution, Ofo became the only shared bicycle company on the list!
All the companies on the list are unicorns with a valuation of more than 1 billion US dollars, and the market value of Ofo is now far ahead.
Many people believe that the shared bicycle sector is very likely to produce an industry leader with a market value of over 10 billion US dollars!
However, for Zhou Dongsheng, when the market frenzy reaches a certain level, it is almost time for him to cash out and leave.
