Recently, the Bitcoin market has staged a thrilling drama. On the evening of April 21st, the price of Bitcoin suddenly plummeted, plummeting nearly $1000 and breaking the $28000 mark
Recently, the Bitcoin market has staged a thrilling drama. On the evening of April 21st, the price of Bitcoin suddenly plummeted, plummeting nearly $1000 and breaking the $28000 mark. This is the lowest level since November 2021. Many investors exclaim, 'Heaven will kill me'!
This sharp drop not only makes Bitcoin holders jumpy, but also causes those who borrow money to buy coins to experience a painful sell out. According to data, over 70000 people sold out within 24 hours, with a total amount of $249 million. This means that these people not only lost all their principal, but also owe a lot of debt.
Some of these people are newcomers lured by the Bitcoin billionaire myth, some are veterans driven by greed, and some are followers misled by giants such as Musk. They thought Bitcoin was a shortcut to wealth and freedom, but they didn't expect it to be a dead end to bankruptcy hell.
Zhao Changpeng, once the richest Chinese, has now become the most miserable wealthy person. His wealth has shrunk by nearly 90% within six months, from $96 billion (approximately RMB 651.7 billion) to $11.6 billion (approximately RMB 78.7 billion), resulting in a loss of over $80 billion (approximately RMB 543.1 billion). His wealth ranking has also dropped from third in the world to 28th.
It is understood that Zhao Changpeng's wealth mainly comes from cryptocurrencies, and he is the founder and CEO of Coin An, the world's largest cryptocurrency exchange. He once bought Bitcoin for $600 in 2017 and later founded his own cryptocurrency, Ancoin. With the soaring prices of cryptocurrencies such as Bitcoin, it has also become a myth of wealth.
However, since the beginning of this year, the cryptocurrency market has suffered a significant blow. Bitcoin has dropped from $69000 per coin in November last year (approximately RMB 461320.4) to $18000 per coin in May this year, a decrease of over 70%. Other cryptocurrencies also plummeted, causing significant losses for cryptocurrency tycoons such as Zhao Changpeng.
There are many reasons for the sharp decline of Bitcoin. Some say it is because Musk "alienated" cryptocurrencies, some say it is because countries such as the United States have strengthened regulation of the virtual currency industry, and some say it is because there has been a panic selling in the market. Anyway, this indicates the instability and unpredictability of the Bitcoin market. Zhao Changpeng himself has also been investigated and prosecuted by multiple governments for suspected illegal activities such as fraud, money laundering, market manipulation, and insider trading. Zhao Changpeng currently has no fixed residence and can only wander in various countries and regions, such as Dubai, Vietnam, Singapore, and so on.
The overnight wealth and decline in the Bitcoin market have shown us the risks and harms of virtual currency trading. This is a zero sum game, where whoever wins will inevitably lose. And this game is controlled by some merchants who hold a large amount of virtual currency and information. They can raise or suppress prices at any time, allowing retail investors to follow suit and eventually become their tools for cutting leeks.
Therefore, we should remind investors not to blindly chase clouds and foam in the virtual money market, but to rationally look at the nature and value of cryptocurrencies such as Bitcoin. Don't be fooled by temporary interests, and be wary of those who spread false information and mislead public opinion. We must adhere to the real economy and innovative technology, which is the true source of wealth.
This article originates from the financial industry
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