My Fintech Empire

As the Mt.Gox trading platform, which had been closed for six days, resumed again, the price of Bitcoin dropped from $17.5 to $14 at the opening, with a drop of -20%, and it was short-selling at the opening.

Because after the hacker attack, the ambiguity of the management team of the Mt.Gox platform caused panic to gradually accumulate in everyone's hearts. Some speculators saw the "opportunity" and could make a fortune by shorting.

The current Mt.Gox platform also happens to provide short-selling tools.

But the short players were not happy for half a minute, and soon they were dumbfounded.

After the price of Bitcoin fell to the price of $14, it immediately started a short squeeze.

This trend is like a plucking onion in dry land. The price of Bitcoin rose by $8 in one breath, directly from $14 to $22.

Not only did it reverse the previous -20% drop, but it also jumped +25.71%, reaching +57.14% from the bottom price of $14.

This trend made the short-side funds immediately numb, and it was just a time to drink water. A large amount of floating profits were swallowed up and the turning of floating losses continued to expand.

Being short-squeezed is actually more terrifying than short-selling, because the price increase is unlimited.

Once you are short-squeezed, you will either call for a margin call, or buy chips from the market at a higher price to close your position and admit your loss.

If you open short at $17.5, and now it rises to $22, the book floating loss rate of the short seller will immediately reach the -32% level, and this is still without leverage.

If leverage was added, the position would have been liquidated long ago.

And at the current price of $22 to close the position and stop the loss, then the -32% floating loss will immediately become an actual loss, and if you don’t want to close the position, you will call for a margin.

But what if it is further squeezed?

The floating loss will further expand, and the margin must be continuously added to avoid being liquidated.

The actual situation is that the vast majority of short-sellers don’t dare to give up, and they rush to close their positions and stop losses. Everyone has seen the sharp fluctuations in the price of Bitcoin, but those who dare to give up and don’t believe in evil, their wallets have been reset to zero .

With the closing and stop loss of short-selling funds, it is necessary to buy chips from the market to close the position, so the chips become popular, which further pushes the price of Bitcoin upwards, thus forming a positive feedback effect.

The horror of being short-squeezed lies in the strengthening of this positive feedback: because you want to close the position, you have to buy chips from the market, eager to close the position and stop the loss, and are willing to pay a high price, and then all the short parties are looting in order to close the position. Chips, leading to further skyrocketing prices, and then exacerbated the panic and became more eager to close positions and quickly stop losses at high prices...

After Fang Hong's trading team brought up the "rhythm", now they don't have to do it themselves to raise the price. The market sentiment will strengthen itself in the positive feedback and continue to push up the price.

The price of Bitcoin quickly soared all the way to the price of 27.9 US dollars, and the increase expanded to 59.43% of the water level.

The short position was blown up, and the lost money was naturally transferred to the longs' pockets, and the longs made a profit.

After being squeezed short by the market, the previous shorts also turned longs.

It's just a gamble anyway.

With such drastic price fluctuations, normal investors will definitely not and dare not reach out. 99% of the participants who dare to come in to play are gamblers and get rich mentality. .

In the end, 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 stepped back by 10 percentage points, and fell by 10 percentage points. In the face of Bitcoin price fluctuations, it could only be called back, and in the big A it was directly lowered.

After stepping back by 10 percentage points, the trend of Bitcoin has once again stepped out of the short-squeeze market.

It continued to fluctuate and rise until it reached the highest price of $43.7 in the whole day, creating an intraday increase of +63.06%, and then stopped. The previous high of $41.2 hit on June 8 was broken today.

In the end, the price of Bitcoin closed at $41.5 today, a surge of +54.85%. It has exceeded the 50cm Yang line in two days, and the cumulative increase has doubled by +137%.

What is certain is that the skyrocketing price of Bitcoin is definitely not a good thing for the Mt.Gox trading platform. The last thing you want is the Mt.Gox trading platform, which has lost 750,000 bitcoins from users.

If the compensation is based on the previous price of 15 US dollars, the theoretical compensation is 11.25 million US dollars, but now the price has skyrocketed to 41.5 US dollars, and the compensation amount has also skyrocketed to 31.125 million US dollars.

Mt.Gox either recovers the bitcoins, or loses money according to the corresponding price.

But the 750,000 bitcoins from the lost users and the 100,000 bitcoins in the hands of the platform have disappeared, and it is really decentralized at the moment.

...

On June 28, the price of Bitcoin squeezed short again, creating the largest intraday increase of +27.27%. The highest price reached $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 hot, whether they are domestic or foreign.

[Niubi, a record high! ]

[Twice three days! ]

[It's either skyrocketing or plummeting, it's really crazy. ]

[The little heart can't take it. ]

[I really can't see the value of this thing, and it's so hyped. ]

[Since he walked around in the currency circle, Big A has no fluctuations in his heart after eating a limit... (cover face.jpg)]

[Fuck, I'm about to bury someone, run! ]

[The cost of Nima is 52, and the quilt cover is 15 points! ]

[Hurry up and go to sleep, be careful to return to zero. ]

[Double-headed, run! ]

[Just go in with the heavy warehouse empty and let the grass mud horse die. ]

...

After the price of Bitcoin rose to US$52.82, it quickly staged a shocking plunge, and fell all the way to US$35.8. The increase of +27.27% turned into a sharp drop of -13.73%, which was -32.22% lower than the current historical high. many.

At the same time, the power of short-selling is getting stronger and stronger, because more and more people think of the crash from $52 to $3.6 on June 8.

However, short-sellers found that the price of Bitcoin could not continue after falling to the price of 35.8 US dollars, but the trading volume continued to increase, and the latest price also fluctuated within a narrow range around the price of 36 US dollars.

About ten minutes later, the more kills and more slump expected by the bears did not happen, but began to rise sharply.

After bottoming out at $35.8, the price of Bitcoin soared all the way, straight up and turned red, and quickly broke through the previous intraday high of $52.82 to hit a record high, further continuing the short-squeeze rise.

Players with heavy positions and short positions felt their scalps tingling. Every few seconds of hesitation, the losses were expanding.

After the price of Bitcoin broke through the previous intraday high, it has been rushing to new highs all the way: $55, $60, $67, and $70 all the way to the height of $71.52, the largest intraday increase of +72.33%, and the nominal market value exceeded 1.5 billion The height of the dollar.

Finally, it closed at a price of $68.51, a sharp increase of +65.08% on the day. Those who open short will lose blood, and those who open long will earn blood. This trend of Bitcoin has time and time again raised the upper limit of the excitement threshold of participants.

...