Bitcoin plummeted 70%, and the method of profit comes?Buy quietly, can I really rely on the sea of the villa?

"People are mixed in the currency circle, and they are hungry for three days." The recent plunge in the cryptocurrency market has made this ridicule being fulfilled. However, some people still have the way to make money. Those who bet on Bitcoin will continue to fall to try to do the empty Bitcoin strategy ETF (Exchange Traded Fund, that is, the exchange trading fund). "".

However, as far as ETF -oriented the majority of retail investors, such products may not be a fast track of high pillows. Many financial regulatory agencies are worried that this form of product form for extensive investors may bring the high fluctuations and high risks behind virtual currency into the global financial system, becoming a "Pandora Magic Box" that constitutes the risk of financial systems.

Slight ETF online

At the peak of the feast of the currency circle last year, Wall Street launched the Bitcoin ETF. At that time, in just 4 trading days, $ 1.2 billion in funds poured into this ETF, and promoted Bitcoin prices a record high.

Nowadays, the currency circle has entered the cold winter, and the same agency has launched short -to -Bitcoin ETFs. On Tuesday, local time, after establishing the first Bitcoin Futures ETF for 8 months, the well -known American investment product PROSHARES launched the first ETF to be linked to the bitcoin.

The ETF will be traded in New York Securities, so the code of "BITI" will be traded at a cost ratio of 0.95 %. It uses the manifestation of the Bitcoin futures index in reverse, hoping to provide a relatively cheap and easy way to make investors profit from the further decline of Bitcoin.

This is not related to the market's recent market. After experiencing a 6 -month decline, Bitcoin weakened again last week, once fell below $ 18,000, which was the "Battle Royale" market, setting the lowest level since December 2020. Although it has rebounded later, as of now, Bitcoin prices are about 70%lower than November last year.

Although in many people's eyes, the new ETF may have missed the best time to profit from Bitcoin's plunge, but Proshares's idea is that it makes it easier for Bitcoin to be empty. Negative views of cryptocurrencies.

"As the market situation recently, Bitcoin may continue to depreciate. We believe that many investors have declined Bitcoin and the entire cryptocurrency as a long time, but they did not take action based on their ideas, because the operation was too difficult or the cost was too high," " Michael Sapir, CEO of Proshares, said, "These investors will be able to build Bitcoin short positions like buying ETFs in a traditional broker account."

It is understood that this is the first reverse ETF linked to Bitcoin. Earlier, Horizons ETF launched an ETF of Bitcoin as a short Bitcoin and was listed on the Toronto Stock Exchange, Canada. Currently, Direxion and Axs of Proshares are also preparing to launch Bitcoin as short ETFs.

The cold winter has not ended

Due to the Fed's radical interest rate hike anti -inflation, risk assets have been sold sharply, the cryptocurrency circle is experiencing "storms and rain". Chen Jia, a researcher at the International Monetary Institute of Renmin University of China, told a reporter from Beijing Commercial Daily that the decline in Bitcoin's round of Bitcoin was related to the Federal Reserve's expected interest rate hike, which caused a wave of risk investment institutions to retreat the liquidity of risk assets. Among them, due to the highest risk of the crypto asset industry, Bitcoin is the flagship category of encrypted assets, and its high -frequency transactions have been sold. Not only that, last week's encrypted asset transactions continued to occur in the process of selling, burst, and institutional stopping products.

Chen Jia believes that from the perspective of risk, a 70 % decline in a large -scale asset category is enough to adjust investors' expectations to enter the valuation restoration stage. However, Bitcoin is very special. In fact, it is already the most anti -decline in the currency circle, the most influential, and the most reflecting the real value of encrypted assets. Bitcoin has collapsed, and the performance of other encrypted assets can be imagined.

It is terrible that in this round of selling, those long -term holders have also begun to reduce their holdings. Former CEO Arthur Hayes, a former CEO of the US futures trading platform, recently said that $ 20,000 represents the price support position of Bitcoin. If it is broken, it will trigger "huge selling pressure".

Bitcoin Exchange SWAN's Bitcoin analyst, Sam Karaham, believes that according to the previous bear market experience, Bitcoin may fall by more than 80%from historical highs, which means that Bitcoin will fall to $ 13,800.

Gundlach, chief executive of dual -line capital, known as the "new debt king", said last week that he would not be surprised if Bitcoin fell to $ 10,000.

In Chen Jia's view, the selling of Bitcoin will continue, because from the current information, in addition to the newly elected Columbia President stated that it is necessary to support Bitcoin, it is basically difficult to find the substantial benefits of Bitcoin. Essence "Of course, due to the particularity of encrypted asset transactions in the coin, the phenomenon of Bitcoin valuation may still be seen in the short term. Assets enter the bear market and continue to continue. "

Chen Jia bluntly stated that in recent years, the currency circle represented by Bitcoin has become more and more risky in terms of profit. The United States and other countries have begun to start hearing on the currency circle assets, which is to curb excessive marketing of the crypto asset industry at the legislative level. Because of recent data, a large number of young people in the United States, Europe and other countries have entered the currency circle to engage in publicity, marketing and trading activities. In turn, some investment institutions are scared and determined to leave this industry with a high risk. However, no one is greedy when others are afraid, such as Musk in the currency circle. On June 19, local time, Musk wrote in Twitter that he would continue to support dog coins. Under a tweet, some netizens replied that when he wanted Musk to continue to buy the virtual currency, Musk said, "I am buying."

Jackson Palmer, co -founder of Dog Coin, also recently said in an interview that the bottom of the cryptocurrency "card house" has "began to collapse."

After Musk's push, the price of dog coins rose, once rebounded from 5.1 cents to 6.25 cents, up over 20%.

Can I really earn it?

Needless to say, most Bitcoin players have the idea of ​​making money when entering the venue. After all, there are too many "rich" myths in this field.

When Bitcoin ETF was launched last year, several major funds recorded records: the fastest global fund exceeding $ 1 billion; the first day of the issuance of the turnover exceeded $ 100 million, which was the second highest in history. The scale of such funds can't help but make people think about its market space.

However, the plunge of Bitcoin once again shows the potential risk of the virtual world again. For the reverse empty Bitcoin, Chen Jia believes that from the professional perspective of financial transactions, this is not a stop loss mechanism, but a model of wild arbitrage of speculation bands. Once such traders in the market increase and increase trading volume to a certain extent, it will not only stabilize the market, but will accelerate the collapse of the market.

Cryptocurrency's "number one opponent" Buffett once said that Bitcoin is not a productive asset and will not produce anything tangible. The encrypted digital asset market that exists in the virtual world is often weak when facing the crisis, and any negative event will be amplified. Buffett also said straightforwardly that even if the total price of all Bitcoin in the world only costs $ 25, he will not buy it.

Chen Jia also specially reminded that Bitcoin is the only asset in the world with a loose asset in the world and a relatively loose regulatory mechanism. Its trading model is unique and cannot be analyzed according to traditional assets. In other words, any institutions or individuals who have analyzed a large -scale analysis of ordinary assets have a strong tendency to harvest, and it is very difficult for any individual investor to make profits through their own transaction capabilities.

Reporter 丨 Tao Feng Zhao Tianshu

Image source 丨 Visual China, One Photo.com, Twitter Screenshot

Edit 丨 Zhang Yajing

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