It's boiling! Bitcoin hits a new high, 130,000 people are liquidated, but these two companies make a fortune! A $100 billion cryptocurrency exchange is listed today

On April 13, the price of Bitcoin hit a new all-time high, breaking through the $63,000 mark for the first time, and increased by more than 5% in 24 hours.

According to the news, Coinbase, the largest cryptocurrency exchange in the United States, will be directly listed on the Nasdaq Stock Exchange on April 14, and will soon become the first cryptocurrency platform in the United States. Currently, Coinbase is valued at $100 billion.

The sharp fluctuations in cryptocurrency prices also led to a sharp increase in the amount of liquidation. According to data from Bitcoin Home, in the past 24 hours, a total of 135,400 people in the cryptocurrency market had their positions liquidated, with the amount of liquidation reaching US$928 million, or about RMB 6.075 billion.

The price broke through $63,000 for the first time, and 130,000 people were liquidated

On April 13, the cryptocurrency market was boiling again. The price of Bitcoin broke through the $63,000 mark for the first time, setting a new historical high, with an increase of more than 5% in 24 hours; Ethereum also broke through $2,200 per coin, setting a new historical high, with an increase of more than 6% in 24 hours.

The sharp fluctuations in cryptocurrency prices also led to a sharp increase in the amount of liquidation. According to Bitcoin Home data, in the past 24 hours, a total of 135,400 people in the cryptocurrency market had their positions liquidated, with a total amount of up to US$928 million, or about RMB 6.075 billion. The largest single liquidation occurred on Bitmex-XBTUSD, with a liquidation of US$10 million, or about RMB 65.49 million.

According to the news, Coinbase, the largest cryptocurrency exchange in the United States, will be directly listed on the Nasdaq Stock Exchange on April 14, and will soon become the first cryptocurrency platform in the United States. Currently, Coinbase is valued at $100 billion, exceeding the combined value of the old exchanges New York Stock Exchange and Nasdaq.

The document shows that in 2020, Coinbase achieved revenue of US$1.277 billion, a year-on-year increase of 128%; net profit was US$322 million. About 85.8% of Coinbase's revenue comes from customer transaction fees. In 2020, Coinbase's cryptocurrency trading volume was approximately US$193 billion, an increase of 141.7% from 2019. As of December 31, 2020, the platform had 43 million verified users, a year-on-year increase of 34.4%.

Since 2021, the price of cryptocurrencies has continued to rise rapidly, and the number of Coinbase users and profitability have also increased significantly. The latest financial report shows that in the first quarter of this year, Coinbase added 13 million new users, and the total number of registered users reached 56 million; the company achieved revenue of US$1.8 billion in the first quarter, an increase of more than 800% year-on-year, and exceeded the revenue of US$1.3 billion for the whole year of 2020; the net profit in the first quarter was US$730 million to US$800 million, compared with US$31.9 million in the same period last year, a surge of nearly 25 times.

Coinbase said it expects trading and custody revenue to drive significant growth in the company's 2021 results given increased interest from institutional investors in crypto assets.

Analysts believe that with the continuous entry of traditional financial institutions and Internet giants, the value of the cryptocurrency field is constantly expanding. The successful listing of Coinbase will make investors in traditional fields pay more attention to the cryptocurrency market.

Tesla's floating profit from "buying coins" is 7.9 billion, 66% higher than its profit from car manufacturing

As of press time, the price of Bitcoin was $63,193 per coin, up 5.28% in 24 hours, with a market value approaching $1.2 trillion, or about RMB 7.94 trillion, exceeding the combined market value of three Moutai brands, ranking sixth in the world by market value, second only to Apple, Microsoft, Saudi Aramco, Amazon and Google, and exceeding the market value of companies such as Facebook, Tencent, Tesla and Alibaba.

Earlier on February 8, Tesla submitted documents to the U.S. Securities and Exchange Commission showing that the company purchased $1.5 billion worth of Bitcoin. It is estimated that the cost of Tesla's purchase of Bitcoin is less than $35,000. As of now, Tesla's floating profit exceeds 80%, and the floating profit amount exceeds $1.2 billion (about 7.9 billion yuan). Last year, Tesla's net profit was $721 million. This means that the money Tesla earned from "speculating on coins" is 66% higher than the net profit from car manufacturing in 2020.

Tesla CEO Elon Musk is known as the "King of Bitcoin". At the end of January this year, after Musk changed his Twitter profile to "Bitcoin", Bitcoin's daily increase was close to 20%. On February 8, after Tesla's purchase of Bitcoin was made public, Bitcoin's price soared again. On the same day, Bitcoin's increase was as high as 18.8%, breaking through $46,000 per coin. On March 24, Musk announced on Twitter that Tesla can be purchased with Bitcoin, and Bitcoin paid to Tesla will be retained as Bitcoin without being converted into legal currency.

Meitu earned 186 million yuan, three times as much as last year

Cai Wensheng, chairman of Meitu, is also a loyal fan of Bitcoin. His Hong Kong-listed company Meitu has purchased cryptocurrencies three times in a row.

On March 8, Meitu's parent company, the Hong Kong-listed Meitu Inc., announced that it had purchased 15,000 Ethereum and 379 Bitcoins (BTC) on March 5. The total consideration for these two cryptocurrencies was approximately US$22.1 million and US$17.9 million, respectively, totaling US$40 million (approximately RMB 260 million).

Later, Cai Wensheng posted on WeChat Moments that Meitu will continue to develop blockchain. Cai Wensheng said: "Someone has to be the first to try it. This should be the first Hong Kong listed company to buy BTC digital currency, and it is also the first listed company in the world to use ETH as a currency value reserve."

On March 17, Meitu purchased 16,000 Ethereum and 386.0858 Bitcoin through its wholly-owned subsidiary Miracle Vision, with a total consideration of US$28.4 million and US$21.6 million, respectively.

On April 8, Miracle Vision further purchased 175.678 units of Bitcoin for a total consideration of approximately $10 million.

As of April 8, Meitu has accumulated a net purchase of approximately $100 million worth of cryptocurrencies. According to estimates, Meitu spent a total of $49.5 million to purchase 940,885 bitcoins, with a cost of approximately $52,600 per bitcoin, a 20% floating profit, and a floating profit of $9.97 million (approximately RMB 65.28 million).

In addition, Meitu spent a total of US$50.5 million to purchase 31,000 Ethereum coins, at a cost of about US$1,629 per coin, with a floating profit ratio of 36.46% and a floating profit amount of US$18.41 million (about RMB 121 million). This means that Meitu's investment in Bitcoin and Ethereum has made a floating profit of RMB 186 million, which is three times Meitu's net profit of RMB 60.9 million in 2020.

As for the reason for purchasing cryptocurrencies, Meitu's board of directors stated that cryptocurrencies have sufficient room for appreciation, and by allocating part of its cash reserves to cryptocurrencies at this time, it can be used to diversify the risks of holding cash in fund management.

More importantly, the Meitu Board of Directors believes that this will demonstrate to investors and stakeholders the Group's ambition and determination to embrace technological innovation and thus prepare for entering the blockchain industry.

Experts warn: The risk is high, don’t follow the trend blindly

As more and more institutional investors (including traditional financial institutions and Internet companies) enter the market, the cryptocurrency market has also risen. Since last year, the price of cryptocurrency has continued to rise, with Bitcoin rising from $71.95 million per coin at the beginning of 2020 to $63,193.62 per coin today, an increase of 7.78 times. Recently, the global cryptocurrency market value hit a new high of $2 trillion.

It is worth noting that cryptocurrencies such as Bitcoin are speculative assets. They have neither the credibility of national sovereignty nor the status of legal tender, and their application prospects are very uncertain.

Regulatory authorities have made it clear that, given the nature of Bitcoin as a specific virtual commodity, there may be higher risks of speculation, higher risks of money laundering, and risks of being exploited by criminals or organizations.

Jesse Powell, CEO of US virtual currency trading giant Kraken, warned that governments may begin to crack down on virtual currencies such as Bitcoin. Powell said that the virtual currency market still faces many uncertainties in government regulation, and these concerns are unlikely to dissipate in the short term.

A recent report by Citi also pointed out that changes in regulatory policies are the biggest risk for digital currencies. If regulations are tightened, some speculative funds will return to the gold market.

Federal Reserve Chairman Powell recently stated that cryptocurrencies have no value support, crypto assets are highly volatile and speculative, and the current global stablecoin regulation is not in place and cannot serve as a substitute for the US dollar.

Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, believes that Bitcoin, as a new thing, has its technical content to a certain extent. However, using it for investment applications will still be very risky, and it is recommended that ordinary people without relevant professional knowledge should not blindly follow the trend of "playing dumb" or "passing the parcel". At the same time, we should also see that central banks in various countries are currently promoting the digitization of their own currencies, so the probability of legal use of Bitcoin in the future is very small.