By 2021, the market of Bitcoin will really open and close. On 1.8, it broke through 40,000 US dollars strongly, and at 8:00 on 1.22, it fell below 30,000 US dollars, which was a relatively high point, and fell by more than 25%. Many friends are exclaiming that the bear market has started, but is it really the bear market?

Many people attribute the decline of Bitcoin to the change of leadership in the United States, the change of leadership of the regulatory agency, Biden's nominee for SEC chairman Gary Gensler and Treasury Secretary Janet Yellen are both bitcoiners. A staunch opponent of currency.

But I think it is more of a normal reaction of the market, Bitcoin has risen too fast. Since mid-December last year, Bitcoin has continued to rise, soaring from around US$17,000 to above US$40,000, breaking multiple integer barriers in a row, with almost no callback, and the price doubled within 2 months. With such an upward trend, the market is already overheated, and many profit holders have and are selling.

Grayscale, a market indicator, is still buying cakes, and every time you buy, there are thousands of tens of thousands. In the past week, Grayscale has added more than 30,000 bitcoins, worth about 1 billion US dollars. Buying and buying like Grayscale can’t stop the decline of Bitcoin, which shows that there are more selling orders than buying orders, and there are bigger whales selling in the market and recovering profits.

According to data, since mid-November 2020, the addresses of giant whales with 10,000 to 100,000 bitcoins have been selling the asset aggressively, while the addresses of medium-sized whales with 1,000 to 10,000 bitcoins have been increasing funds. In every bull market, there will be many rounds of token redistribution, and the redistribution of interests will be funded by funds and capital in, and the game will continue.

The $40,000 price of Bitcoin has only doubled compared to the high point of the last round of bull market, which is far from satisfying the appetite of capital. The current currency circle is actually not so perfect, and the volume is not too big. It really looks like a big casino (forgive me for saying this), and the sharp rise and fall is actually commonplace. The rules here are all set by the big dealers. After all, this is actually a process that every capital market must go through before it matures. The price of Bitcoin will eventually stabilize, but there is still a long way to go, at least Bitcoin is still far from its target gold.

At present, the total market value of gold is about 12 trillion U.S. dollars, and the total circulation market value of Bitcoin is about 600 billion U.S. dollars. The market value of Bitcoin only accounts for 5% of the total market value of gold, which is far from its title of digital gold. of. Moreover, the performance of Bitcoin in 2020 has also made more and more people recognize its hedging attributes. Bitcoin has better portability, divisibility and more convenient transactions than gold. The future of Bitcoin still has a very broad space for development. In fact, we take a long-term view of the bitcoin market. In fact, bitcoin has been rising all the way, and this trend will continue in the future.

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1) Take advantage of the trend, seize hot spots, and pay attention to leading currencies

Many friends will have a habit, look at the market, and if the currency has risen less, they will go to deploy that currency. Of course, we are talking about relatively mainstream currencies (a group of top-ranked currencies except for big pie).

In fact, this approach cannot be said to be wrong, and it is also a way to plan ahead and make profits. But for a big bull market, it will make you lose more profits. In the bull market, we must find the leading currencies in the hot sector. These currencies are the currencies that lead the entire market, and will give you the opportunity to obtain greater profits.

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2) Only make money for the functions of your cognitive scope

Money in the currency circle is not easy to make, and it may be difficult for many people who want to come in and earn a few dollars. For people with this kind of thinking, you will only lose everything and leave the circle.

The bull market is coming, there will be many new ways to play, and many people will benefit from it and get rich, and many people will rush in without knowing it. The waiting country that rushes in may be cut off Chinese chives.

I most want the latest algorithmic stable currency. This concept has been popular for a while, and there are many related projects. The algorithmic stable currency is said to be a stable currency, but it is not stable. It hopes to maintain a stable anchor currency price by relying on the algorithm lai. But because only relying on the algorithm, many participants are given the opportunity to profit. But if you don’t even know what algorithmic stablecoin is, and follow others to buy it, you will basically lose money. A friend of mine saw someone call base before, and at the time it was said that the income from inflation was very objective (the price was around 1.1U at that time), and he bought it at 0.7U after a callback, and it turned out to be deflation the next day, because we It is known that when the algorithmic stable currency is above $1, it will inflate to achieve the purpose of reducing the currency price; when it is below $1, it will deflate to increase the currency price. My friend doesn't even know how to get in. If you don't lose money, who will lose money?

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3) Do not guess the top or the bottom, long-term value investment

Under the temptation and fear of ups and downs, it is difficult for us to keep a calm mind. We all hope to guess the top and bottom of a wave of market, but this is basically impossible. What we do in this way, one is It consumes a lot of our own energy, and it is often useless; second, if we really do it according to our analysis, we will often lose a lot of our bargaining chips. The market, especially the bull market, tends to be in a hurry. Once you get off the bus, it may be difficult for you to get back on the bus, so don't often guess the top and bottom, it is basically meaningless.

In a bull market, you just need to hold the bargaining chip in your hand firmly, and don’t frequently guess the top and bottom. Long-term value investment is the best way to maximize profits.

The bull market is far from over, and it is just beginning now. After a short-term correction, there will be a healthier rise. I hope we can all make money in this round of bull market.