As night fell, virtual currency fell rapidly, which shocked the whole currency circle. Among them, bitcoin fell by about 34% from the high point of the day and once fell to $29,000; Ethereum (ETH) was once halved; Other newly popular currencies, such as dogecoin and Shiba Inu, once fell by 56% and 64% respectively.
"This plunge has also ranked in the top ten in history." Wang Shuai, who came into contact with Bitcoin eight years ago and experienced many ups and downs, told the author that during the plunge in the evening of May 19, the book value of his virtual currency plummeted by nearly 500,000 yuan, leaving only 1 10,000 yuan. He didn't disclose the cost of buying money.
Compared with the heartbeat of "Currency Circle mr. six", the "one-night fright" of the new leek is even more painful.
According to the data of the market data platform "Coin", as of 7: 30 am on May 20th, the total short position in the past 24 hours reached US$ 6,965,438+billion (about 44.4 billion RMB), and about 580,000 people broke positions.
The reason for the short position is that the contractual leveraged transactions provided by speculative platforms are used more. Whenever the market drops rapidly and investors have no time to pay the deposit, they will face a strong trading platform. Hundreds of thousands of people broke positions, which means that more speculators have used higher multiples of leverage in transactions recently, which reflects the buyer's blind optimism about the later market.
Although three hours later, Bitcoin and other virtual currency markets seemed to gradually "recover lost ground" and Bitcoin returned to around $40,000, the wealth destroyed by the exploiters could never come back.
After 5 19 night, bitcoin resumed its decline and fell to around $36,000.
First, the currency circle encountered a "sober moment" of supervision.
In the past year, the prevalence of speculation has led to a sharp increase in the variety and trading volume of virtual currency. In overseas markets, Elon Musk, the second richest man in the world, allowed Tesla to accept bitcoin to buy a car, and legendary investor paul jones proposed to buy virtual currency to fight inflation. Both of these measures attracted more people to enter the virtual currency market in 2020.
"During the epidemic, part of the cash originally used by the US government for bail-out flowed into the trading platform, and the commission was zero." A US stock analyst told the author, "The more convenient trading interface of the new trading platform makes stock trading gamified, and the trend of working from home caused by the epidemic also makes online community speech more influential. The wealth effect allows more people to participate, and everyone seems to be a day trader, which also makes the speculative atmosphere spread in the US stock market and currency circle. "
Before mid-April this year, the price of Bitcoin had soared from $7,000 in 2020 to $65,000, and the increase of various new virtual currencies was "out of the gravity of the earth": dogecoin once rose by 1 10, and Shiba Inu once rose by 280,000 times.
However, on the evening of May 18, the currency circle encountered a "sober moment". China Internet Finance Association, China Banking Association and China Payment and Clearing Association jointly issued an announcement to warn the speculative risk of virtual currency transactions.
On the evening of May 18, the People's Bank of China issued the announcement of three major trade associations on preventing the speculative risk of virtual currency.
Some speculators have told me that it is difficult to supervise the over-the-counter transactions of virtual currency. As long as the names and characters of virtual currencies such as BTC (Bitcoin) and ETH (Ethereum) do not appear in the remarks, they can be recognized as transfers and remittances between individual users in the eyes of financial institutions and payment institutions. It remains to be seen whether the regulatory authorities will take concrete actions after this round of risk warning.
On the evening of May 19, Sharla Cheung (a pseudonym), a person in the currency circle, told the author that after the announcements of the three major associations came out, people in the currency circle were also waiting to see their further influence. "Recently, many industry activities and forums in the currency circle have been temporarily cancelled."
Second, "Musk is not a god."
In addition to the tightening signal of domestic regulatory release, Musk's "sudden rebellion" is also considered to be one of the incentives for this round of virtual currency crash, which led him to be personally questioned by believers and other participants in the currency circle.
Tesla is not the first listed company to buy coins. Long before Tesla bought coins, Microstrategy, an American listed company, invested some cash in its balance sheet in virtual currency. However, what is more provocative is to bring goods, with a personal net worth of $654.38+042.6 billion, ranking second in Forbes' list of the world's richest people. "Because he has enough capital to prove his prediction." Followers Qi Chen (a pseudonym) told the author.
Although the driving force of this round of bitcoin rise is considered to be the entry of institutional investors, JPMorgan Chase's research report said that the role of institutional investment has been exaggerated, and the entry of retail investors is the main driving force. Musk is clearly an "opinion leader" among retail investors.
On social media, Musk has more than 55 million fans, especially among the younger generation of investors around the world. For retail investors, Tesla publicly announced the purchase of $654.38+0.5 billion in bitcoin on February 8, which was regarded as a "buy signal". From the announcement of the news to mid-April, Bitcoin rose from about 40,000 US dollars to about 65,000 US dollars. It is estimated that Tesla's bitcoin cost price is around 28,000-30,000 US dollars.
But Musk suddenly "turned against the water". Last week, he publicly stated on social media that he would no longer accept bitcoin to pay for car purchases because mining is not environmentally friendly. Market sentiment turned negative.
Musk's unprecedented influence on the currency circle and inconsistent tweets have changed the attitude of other currency circle participants to Musk from "hitchhiking" to "drawing a line".
"There is no God among us." Anthony Pompliano, one of the founders of Morgan Creek, an investment company that manages digital assets for institutions, publicly shouted on social media, "Celebrities, athletes, musicians, billionaires and entrepreneurs are not as important as all of us think. The Bite community once welcomed Musk with open arms. But if he continues to do stupid things, he should leave as soon as possible. "
In this crash, Cathie Wood, who managed $50 billion in assets, came forward to rescue the market at the Businessweek Forum held on May 19, insisting that more bitcoins rose to $500,000. She also said that there is a solution to Musk's concern that mining is not environmentally friendly. She pointed out that the global mining power is about 10-20 GW. If we can use the idle 200GW of new energy such as solar energy and wind energy, we can realize the green transformation of bitcoin mining. She also hinted that Tesla may play a more important role in this process. Tesla holds Sun City assets and focuses on photovoltaic technology.
Almost at the same time, the "willful" Musk once again shouted on social media, saying that Tesla had a "diamond hand". This is the network code of the currency circle, suggesting that it will continue to hold virtual currency positions. The decline of virtual currency then narrowed.
Third, the novelty and cruelty in the "zoo coin circle"
Musk's ability to carry goods in the currency circle is not limited to bitcoin.
Deng Jie (a pseudonym), a buyer of virtual currency, told the author that he bought Doecoin because Musk spared no effort to bring goods to Doecoin and buy Shiba Inu, and also because Musk sent a tweet suspected to be related to Shiba Inu.
Dogecoin and Shiba Inu are both popular virtual currencies recently. Doecoin was originally invented to make fun of virtual coins, while Shiba Inu was invented to be a "Doecoin killer". But these "new buyers" don't seem to care about the history, original intention, supply-demand relationship or internal management mechanism of these created "new currencies".
"I just want to buy a movie ticket in the front row." A new buyer of Shiba Inu coins said, "People who buy coins and then make money inexplicably can often be seen in the WeChat group. I also want to have a try. " When asked whether to set a stop-loss line for himself or how much principal he planned to invest, he said that he had no plans yet.
On the day of "5 19 fright night", both dogecoin and Shiba Inu coins, once lit by musk, once fell by more than 50%. In addition to dogecoin and Shiba Inu coins, there are many kinds of virtual coins on the market, such as pig coins, orangutan coins, huskies and Akita dogs. , thus staged a coin "zoo" market.
Sharla Cheung expressed concern about the entrance of new leek: "The market has greatly exaggerated the skyrocketing of dogecoin and Shiba Inu coins, which has stimulated many small white novices to enter the market. This is already very naked to cut leeks. " He also said that the risk warnings of the three major associations in the financial circle are timely.
Even Wang Shuai, a self-proclaimed speculator, admits that the "zoo market" is destroying the value judgment of virtual currency. It seems that as long as you buy virtual currency and then celebrities bring goods, you can wait for the price of the currency to skyrocket and get rich. Even the newly issued "animal currency" has set absurd rules, and you can only buy it but not sell it.
Wang Shuai told me that the speculative money market trades 7x24 hours a day, and about 20% speculators will trade contracts (plus leverage). According to statistics, the average time for a novice to enter the contract market to lose the principal is 45 days.
Wang Shuai is not as optimistic about the market prospect as before. # Bitcoin [Chaohua] # # digital currency # # Ou Yi OKEx#
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