As the x trading platform, which had been closed for six days, resumed again, the price of Bitcoin plummeted from $17.5 to $14 at the opening, with a price drop of -20%, and it was shorted at the opening.
Because after the hacker attack, the vague words of the x platform management team gradually accumulated panic in everyone's hearts. Some speculators saw the "opportunity" to make a lot of money by shorting.
The current x platform also provides short selling tools.
But the short players were not happy for half a minute and were soon dumbfounded.
After the price of Bitcoin fell to $14, it immediately started a short squeeze.
This trend is like pulling onions on a dry land, with the price of Bitcoin rising by 8 US dollars in one breath, from 14 US dollars to 22 US dollars.
Not only did it reverse the previous -20% decline, but it also surged by +25.71%, rising from the bottom price of $14 to +57.14%.
This trend has completely wiped out the funds of the short side. In just the time to drink water, a large amount of floating profits were swallowed up, and the floating losses continued to expand.
Being shorted is actually more terrifying than shorting because the price increase is unlimited.
Once you are shorted, you will either need to make a margin call or buy chips from the market at a higher price to close your position and admit your losses.
If the short position was opened at $17.5 and now rises to $22, the short seller's book floating loss rate will immediately reach -32%, and this is without adding leverage.
If leverage had been added, the position would have been liquidated long ago.
If you close the position and stop the loss at the current price of 22 US dollars, then the -32% floating loss will immediately turn into an actual loss. If you don't want to close the position, you will need to add a margin.
But what if it is further squeezed?
Floating losses will further expand, and margin calls must be continuously made to avoid being liquidated.
The actual situation is that the vast majority of bears do not dare to be stubborn and rush to close their positions and stop losses. Everyone has seen the violent fluctuations in the price of Bitcoin. Anyone who dares to be stubborn will have their wallets reset to zero. .
As short-selling funds close positions and stop losses, chips need to be bought from the market to close positions, so chips become more popular, further pushing the price of Bitcoin upward, thus forming a positive feedback effect.
The horror of being shorted lies in the strengthening of this positive feedback: because you want to close your position, you have to buy chips from the market, and you are eager to close your position and stop the loss, and you are willing to pay a high price, and then all the short parties start a run-like rush to close your position. chips, causing prices to skyrocket further, and then intensifying panic and making people more eager to close positions and sell high prices to quickly stop losses...
After Fang Hong's trading team set up the "rhythm", they no longer have to do it themselves to push prices up. The market sentiment is self-reinforcing in the positive feedback, constantly pushing up prices.
The price of Bitcoin soon soared all the way to $27.9, with the increase expanding to 59.43%.
The short sellers were wiped out, and the lost money was naturally transferred to the long sellers' pockets, and the long sellers made huge profits.
After being squeezed short by the market, the previous short positions also turned long.
It’s just gambling anyway.
With such violent price fluctuations, normal investors will definitely not and dare not reach out. 99% of the participants who dare to come in and play have a gambler mentality and a mentality of getting rich quickly. They want to take a chance and turn their bicycles into motorcycles. .
Finally, the price of Bitcoin closed at $26.8 today, up +53.14%, and the amplitude reached 79.73% throughout the day.
…
On the second day, the price trend of Bitcoin fell back by 10 percentage points, a drop of 10 percentage points. In the face of Bitcoin's price fluctuations, it can only be called a rebound. In Big A, it fell directly to the limit.
After falling back by 10 percentage points, Bitcoin's trend has once again exited the short squeeze market.
It continued to fluctuate upwards until it reached the highest price of the day at $43.7, recording an intraday increase of +63.06% before stopping. The previous secondary high of $41.2 hit on June 8 was broken today.
In the end, the price of Bitcoin closed at $41.5 today, a sharp increase of +54.85%. It had a positive line of more than 50cm in two days, and the cumulative increase doubled by +137%.
What is certain is that the skyrocketing price of Bitcoin is definitely not a good thing for the x trading platform. The last thing that wants to see a skyrocketing price now is the x trading platform, which has lost 750,000 bitcoins from its users.
If the compensation was based on the previous price of 15 US dollars, the theoretical compensation would be 11.25 million US dollars, but now the price has skyrocketed to 41.5 US dollars, and the amount of compensation has also skyrocketed to 31.125 million US dollars.
x will either recover the Bitcoin or lose money at the corresponding price.
But the 750,000 Bitcoins lost to users and the 100,000 Bitcoins held by the platform have disappeared. Now it is truly decentralized.
…
On June 28, the price of Bitcoin was shorted again, recording the largest intraday increase of +27.27%. The highest price reached a price of $52.82, breaking through a record high, and the market value soared to $1.109 billion.
The currency circle is booming now, and all major forums and communication groups are very popular, both at home and abroad.
[Niubi, a record high! ]
[Twice in three days! ]
[It’s either skyrocketing or plummeting, really crazy. ]
[The little heart can’t bear it. ]
[I really don’t see the value of this thing, why it is so popular. ]
[After wandering around in the currency circle, Big A has no fluctuations in his heart even though he has hit the limit... (face covering.jpg)]
[Shit, we're going to bury someone, run! ]
[The cost is Nima 52, and the quilt cover is 15 points! ]
[Hurry up and cut the meat and go to sleep, be careful to return to zero. ]
[Hit both heads, run! ]
[Just go in with a heavy position and an empty position, and the horse will die. ]
…
After reaching the price of 52.82 US dollars, the price of Bitcoin quickly staged a shocking plunge, all the way down to the price of 35.8 US dollars. The increase of +27.27% turned into a sharp drop of -13.73%. Compared with the current historical high, the decrease reached -32.22%. many.
At the same time, the power of short selling is getting stronger and stronger, because more and more people think of the collapse from $52 to $3.6 on June 8.
However, short sellers found that the price of Bitcoin could not survive after falling to the price of 35.8 US dollars, but the trading volume continued to increase, and the latest price also fluctuated in a narrow range around the price of 36 US dollars.
About ten minutes later, the multi-kill and multi-slump expected by the bears did not happen, but began to rise sharply.
After hitting a bottom of $35.8, the price of Bitcoin surged all the way up. It rose straight up and closed in the red. It quickly broke through the previous high of $52.82 in the day and hit a new all-time high, further continuing its short-squeeze rise.
Players with heavy positions and short positions felt their scalps numb. Every few seconds of hesitation, the losses were increasing.
The price of Bitcoin broke through the previous high of the day and then rushed to new highs: 55 US dollars, 60 US dollars, 67 US dollars, 70 US dollars, all the way to a height of 71.52 US dollars, setting the largest intraday increase of +72.33%, and the nominal market value exceeded 1.5 billion. The height of the dollar.
It finally closed at the price of 68.51 US dollars, a sharp increase of +65.08% on the day. Those who were short were cut off, and those who were long were profitable. This trend of Bitcoin has repeatedly raised the upper limit of the excitement threshold of participants.
…
(End of chapter)
