In the first half of 2011, the price of bitcoin went up from 30 cents to $30. Do you think it went up much? Did you sell it?

In April 2013, bitcoin rose as high as $266. Do you think it rose much? Did you sell it?

In November of the same year, the price of bitcoin reached $1242 again. Do you think it has gone up much? Did you sell it?

From November to December in 2017, we came to the position of $20000. Do you think it's much higher? Did you sell it?

Today, the price of bitcoin is above $60000. Do you think it's much higher? Did you sell it?

Undoubtedly, no matter which rise of bitcoin above, the rise is huge, and the result is that it can be bought out!

Moreover, looking back on history, we will find that bitcoin is different from other assets in that the higher the price of other assets is, the more loose the chips are, and investors are ready to be out at any time. But if you look at bitcoin, you will find that the higher its price goes, the less people will sell it.

Why is that? Because its supply is limited, only 21 million, and now there are only 18 million in the market. Therefore, bitcoin is different from stocks, funds and other investment products. With the development of time, it is more and more inclined to value investment.

Since it is a value investment, it means that the price of bitcoin is bound to rise in the shock and develop in the twists and turns.

In other words, we can understand that the higher the price of bitcoin, the more people are willing to accept the offer, so the less the risk. (the higher the price, the more proof it is a value investment.)

Why do people sell a lot of bitcoin at a high level, and the price will not fluctuate more severely? So why is bitcoin still hot?

I can also talk about my own understanding. If someone sells a lot of bitcoin, it will certainly cause bitcoin to fall, or even plummet. And this situation is very common in the history of the development of bitcoin, a sudden drop of 70-80% is not without.

For example, at the beginning, bitcoin had poor liquidity and trading depth, and its price plummeted from about $32 to $2.

For another example, the withdrawal business of bitcoin was suspended in Mentougou in those years, which led to market panic. People sold bitcoin one after another, and bitcoin fell from $260 to $40.

Even in today's epic bull market, there must be a big correction in the middle. (only when there is a callback can we wash the dish and make the dish more healthy)

However, without exception, bitcoin has regained its momentum and reached a new high. As mentioned above, the price of bitcoin is destined to rise in the shock, so every sharp drop is an opportunity to attract funds.

In addition, I would like to emphasize that 2020 is different from any other year in the past. Through financial data, we already know that the largest holder of bitcoin is the U.S. institution, and the leading one is gray. Once we invest money to buy bitcoin, it will drive the price of bitcoin upward.

At present, bitcoin is still growing in value, so the price of bitcoin will have a lot of imagination. And the higher the currency price, the higher the arbitrage cost of institutions. Such a situation is bound to be a game for a period of time, so the bull market will not go for a while.

If the price falls, do not panic, to distinguish between the normal callback, or bull bear conversion. In order to distinguish this point, we generally have to return to the market.

(2021-4-4)