Retail investors want to challenge Wall Street with BTC, but they have more heart, but not enough "money"
Affected by the policies of some countries, the price of BTC dropped sharply this week, and it even reached its lowest point in the year on May 22. Although there has been a rebound in these two days, the panic in the market has not disappeared. Based on the analysis of the known news in the past two days, I personally do not believe that BTC's future is optimistic, because retail investors are already feeling cold. The price of BTC has fluctuated sharply many times this week, allowing many people to take advantage of the opportunity to take advantage of it, but most retail investors should be deeply trapped and harvested.
According to the price trend of BTC, the current price is already at the bottom of the year, which is only a little bit higher than in January. In other words, theoretically speaking, the entire BTC market, although some people made a lot of money during the hype this year, the overall BTC market is still at a loss this year. In particular, some users of high-leverage contracts have been killed in the past few days, and tens of billions of funds have been liquidated. According to the contract data of the market reaction, the scale of BTC contracts on the market has been significantly reduced, which means that retail investors have been eaten out of fear.
Although many people want to continue to reap the wealth of Wall Street through BTC, the wallet does not allow it. BTC is a big gambling table. Capital giants and retail investors gambling around the table feel that they are not the last taker. But in fact, in the BTC market, capital giants have the dual advantages of capital and information. How can retail investors beat them? Although in this process, some retail investors can take advantage of the opportunity to make a fortune, but the general trend of retail investors can not match Wall Street.
Unplugging network cables and power outages have become one of the means for capital giants to harvest BTC retail accounts
We must know that in today's information technology, BTC is a kind of encrypted currency, but it is almost transparent in the eyes of capital giants. Especially in the BTC trading market, most trading platforms are controlled by capital giants, who know most of the transaction data and transaction resources. Although the hype BTC can make money regardless of its ups and downs, it is a technical job to open up and down. You need to know whose power and capital are in the hands. If you have the ability to influence BTC's trend, how would you manipulate BTC's price trend?
Of course, most users who participate in BTC hype have certain risk awareness capabilities and have a certain understanding of the risks and benefits of BTC. However, understanding does not mean that you will be willing to accept the wanton harvest of capital. If you win money upright, I think many people can also accept it. But using some shameful little tricks will make people feel disgusting, and even worry about the fairness of hyping BTC. Decentralized BTC, because of its interests, many people follow the trend and hype. But also because of benefits, BTC has lost its original fairness.
I think many people have heard of Game Station, a very classic long-short battle on the US stock market, which caused heavy losses to Wall Street shorts. Many people think that in the long-air battle at the game station, it was the retail investors who defeated the capital giants. Of course, the truth is unknown. However, in this long-air battle of the game station, there have been some discordant events. Multiple trading platforms such as Robinhood, Ameritrade, Fidelity Investment and Charles Schwab have all experienced downtime.
Although there is no clear evidence to prove that this is a human operation, I believe that it is fair to the people. Unplugging network cables and power outages has become a new method for capital giants to harvest retail investors. Unfortunately, when BTC crashed on May 19, cryptocurrency trading platforms such as Binance, Coinbase, Gemini, and KuCoin also experienced downtime. Even some accessible cryptocurrency platforms have some problems to varying degrees, such as not being able to buy BTCs and withdraw cash.
BTC trading platform is down and users can’t cover up their positions in time, which is one of the main reasons for cutting the bottom of the meat.
You must know that on May 19, the entire cryptocurrency market contract liquidated more than 40 billion funds, of which BTC should account for a very high proportion. Although even if the Coinbase, Bitfinex, Binance, and Kraken trading platforms are not malfunctioning, there will be BTC contract users who will blow out their positions in this decline, but the scale of the liquidation is certainly not that large. BTC leveraged contract users can reduce the risk of liquidation if they add margin in time when the price of BTC fluctuates sharply. Moreover, such large and abnormal fluctuations will make some people take advantage of the opportunity to make a fortune.
In fact, even if BTC contract users do not have the money to cover their positions in time, when BTC falls sharply, some of the funds will want to take the opportunity to buy the bottom. After all, when BTC was at the price of 38,000 US dollars, some funds had begun to increase positions, and MicroStrategy announced that it had purchased about 229 BTCs with 10 million US dollars. But the ideal is very full, the reality is very skinny, an unexpected downtime makes everything go to nothing. BTC's sharp drop on May 19 was not only unbearable for users with high leverage, but also forced some users with low leverage to liquidate their positions.
In the case of unexpected downtime of trading platforms such as Coinbase, Bitfinex, Binance, and Kraken, the BTC contract market can be said to be big and small, and retail investors are devastated. Increasing panic in the cryptocurrency market will have a chain reaction, and a large number of meat-cutting disks will be generated after a liquidation. The selling pressure generated by the cutting board should be one of the main reasons for BTC's sharp dive. This is also what I mean by cutting the meat. However, I have not seen reports of the downtime of trading platforms such as Coinbase, Bitfinex, Binance, and Kraken before, and I am wondering why retail investors are "easily" eaten.
When I saw the news that the scale of BTC leveraged contracts was decreasing, I was also puzzled. Why did retail investors suddenly become rational? It turned out to be afraid of being killed and miserable, so under the double blow of capital, some people have lost the confidence to speculate on BTC.
