China Fund News reporter Jin Youzhi

That night, Bitcoin took a roller coaster ride and the Dow Jones Industrial Average also experienced a "400-point" reversal.

580,000 people have suffered a liquidation of 44.3 billion in the entire cryptocurrency market, but the "female Buffett" is still bullish at 500,000 US dollars, and Musk also quickly spoke out.

Sun Yuchen, the founder of Tron, even claimed that he had spent 980 million yuan to buy the bottom of Bitcoin and 860 million yuan to buy the bottom of Ethereum. This means that he has spent a total of about 1.85 billion yuan to buy the bottom of cryptocurrencies.

Bitcoin violently rebounds to $10,000

The rebound reached 40% at one point, and 580,000 people were liquidated for 44.3 billion yuan

On Wednesday, Bitcoin plunged 30% at one point, and the cryptocurrency market also plummeted collectively. After the price of Bitcoin hit the $30,000 mark, it rebounded violently and quickly, rising to above $42,000 at one point, rebounding by more than $12,000, a rebound of 40%.

But after a violent rebound, the price of Bitcoin fell back this morning. As of press time, the price of Bitcoin fell below $40,000 and hovered around $38,000.

The sharp rise and fall of Bitcoin prices has caused many people to have their positions liquidated. As of 7 a.m. Beijing time this morning, nearly 580,000 people had their positions liquidated in the past 24 hours, with a total liquidation amount of 44.3 billion yuan.

Tron Coin founder Justin Sun buys at the bottom

Spending 1.85 billion

As the price of Bitcoin plummeted, Justin Sun, the founder of TRON, posted on social media to support the cryptocurrency.

He said he had "bought on dips," purchasing $153 million (980 million yuan) worth of Bitcoin at an average price of $36,868 and $135 million (868 million yuan) worth of Ethereum at an average price of $2,509.

If his remarks are true, it means that he has spent 980 million RMB to buy the bottom of Bitcoin and 860 million RMB to buy the bottom of Ethereum, for a total of about 1.85 billion RMB to buy the bottom of cryptocurrencies.

"Female Buffett": Bitcoin will still rise to $500,000

Musk also spoke out!

On Wednesday local time, when the cryptocurrency market fluctuated sharply, Cathie Wood, known as the "Female Buffett" and the "Queen of the Bull Market", said that she is still full of confidence in Bitcoin and still expects it to rise to $500,000.

But she also said that despite her long-term bullish conviction, Bitcoin and other digital currencies may have more room to fall before rebounding; when the market is very emotional, you never know how low the low will be.

Musk also spoke out.

He posted a very short sentence on Twitter, which was interpreted by many people as Tesla owning diamonds, and diamonds were most likely hinting at the value of Bitcoin.

US stocks also saw a big reversal

Dow rebounds 400 points

As the price of Bitcoin reversed, the U.S. stock market also reversed. Shortly after the opening, the three major stock indexes all fell by more than 1%, but fluctuated upward during the session, and the closing declines were narrowed to less than 0.5%.

Among them, the Dow Jones Industrial Average hit a low of 33,473 points during the session, but closed at 33,896 points, rebounding 423 points from the intraday low.

As of the close, the Dow Jones Industrial Average fell 0.48% to 33,896.04 points; the Nasdaq fell 0.03% to 13,299.74 points; and the S&P 500 fell 0.29% to 4,115.68 points.

In addition to the volatility of cryptocurrency prices, the three major stock indexes were dragged down during the trading session by the release of the Federal Reserve's meeting minutes.

At around 2 a.m. Beijing time, the latest minutes of the Federal Reserve meeting were released. The minutes suggested that Fed officials would discuss tightening policy. The Dow Jones Industrial Average then plunged, falling more than 1% again, but the decline narrowed near the end of the trading day.

The minutes of the Federal Reserve's meeting on April 27-28 showed that officials were cautiously optimistic about the domestic economic recovery at the April meeting; some participants believed that if the economy continued to develop rapidly toward the Federal Open Market Committee's goals, it might be appropriate to begin discussing plans to adjust the pace of asset purchases at some point in the next few meetings; System Open Market Account (SOMA) managers pointed out that downward pressure on overnight interest rates in the coming months may lead to the need to consider moderate adjustments to managed interest rates.

However, some participants pointed out that it might take some time for the economy to make further substantial progress toward the goals of full employment and price stability.

It is worth noting that the Fed's meeting minutes reflect the views of Fed staff from April 27 to 28. After that, the April employment data and retail data that were lower than expected were released. At that time, the officials' views obviously did not take into account the complexity of the economic recovery reflected in these data, so the views were somewhat "outdated". This may be an important reason why the market did not react too much to the Fed minutes.

Analyst Chris Anstey believes that so far, the Fed does not seem to have enough reason or evidence to support it in June to send a tough signal that tapering is coming. This is even more so considering the disappointing employment and retail data in April.

Analyst Cameron Crise believes that it is normal to discuss tapering. He said that the Fed minutes reflect a meeting held before the recent non-farm payrolls and inflation reports, so in a sense, the views of the meeting are a bit old. The headlines about the timing of tapering are causing a series of reactions, but this should not be unexpected for the market. If you think about it, it would be unusual if they didn't start discussing this issue at the upcoming meeting.

Tesla closed down again, having fallen 37%

"Female Buffett" increases holdings

Tesla, which holds a large amount of Bitcoin, failed to close higher as Bitcoin prices rebounded.

Tesla closed down again on Wednesday. As of the close, Tesla fell nearly 2.5% to $536.46, a 37% correction from the year's high of $900.4. Compared with the high point of the year, Tesla's market value has fallen by $317.6 billion, or about 2 trillion yuan.

On the news front, on Tuesday local time, Electrek quoted people familiar with the matter as saying that Tesla had more than 10,000 electric vehicles produced from the Fremont factory and could not be delivered to users due to missing parts.

People familiar with the matter said that 10,000 to 20,000 vehicles were sealed and preserved due to the lack of unknown parts, and some Model 3 and Model Y still retained the sealed preservation labels when they came off the production line; this problem is small and can be solved by the service team, but it will cause delays in vehicle delivery; in the worst case, the delivery time of some vehicles may be postponed to the third quarter, and Tesla's second-quarter performance will be affected.

According to Futu, ARK Investment Management's flagship funds ARK Innovation ETF and ARK Autonomous Technology and Robotics ETF increased their holdings of Tesla by more than 47,000 shares on Tuesday. Although the value is only $27 million, this is Ark's first purchase of Tesla since April.

Tesla is the biggest short-selling target in the U.S. stock market

Short positions approach the combined total of Amazon and Microsoft

According to Yahoo Finance, Tesla is currently the largest short-selling target in the U.S. stock market. Ihor Dusaniwsky, managing director of predictive analysis at analysis firm S3 Partners, said this is the largest short-selling target in the world in recent years.

Data from S3 Partners shows that as of May 13, short interest in Tesla reached $22.5 billion. As Dusaniwsky points out, that's almost as much short interest in Amazon and Microsoft combined.

The prototype of "The Big Short" is also shorting Tesla. This week, Scion Asset Management, a fund owned by Michael Burry, the prototype of the movie "The Big Short", released its latest 13 reports, which showed that the fund held a short position in Tesla worth more than $500 million.