95,000 people were liquidated! Bitcoin is more expensive than gold at 370,000 per coin, and Tesla made a huge profit of 6.5 billion by speculating in Bitcoin

After Bitcoin "crashed" from over $57,000 to $54,000 on Saturday, the price of Bitcoin has hit a new all-time high, exceeding $58,000 for the first time.
As Bitcoin is gaining momentum, many bigwigs have changed their views and joined the "coin-hyping" camp, with some even calling out a sky-high target price of $1 million.
However, with the "madness" of Bitcoin, more and more retail investors are facing new risks of liquidation, and many industry insiders have warned that now is not a good time to enter the market to buy coins.
Even Tesla CEO Musk, who once crazily promoted Bitcoin, has begun to say that the price of Bitcoin "seems to be at a high level."
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Bitcoin is "officially" more expensive than gold <br />Since the beginning of 2021, Bitcoin has soared more than 85%. Compared with the low of $3,858 in March 2020, Bitcoin has risen by more than 1,300% in the past year.
After January 8, the price of Bitcoin fell for a while, but it resumed its rise at the end of January and continued to set new highs. Last week, it broke through $50,000. The recent high reached $58,332.36 per coin (about 377,000 yuan).

Interestingly, this is also the first time in history that the price of 1 Bitcoin has exceeded the price of 1 kilogram of gold.

Recently, as investors' optimism about the global economic recovery has pushed up U.S. Treasury yields, gold's appeal has declined. Currently, spot gold is trading around $1,790 an ounce, hovering near an 11-week low.

On February 18, Jeffrey Gundlach, founder and CEO of Doubleline Capital and the "new bond king," tweeted that he has been bullish on gold for many years, but with too much liquidity being injected into the market, Bitcoin may be a "stimulus asset" that causes a price rebound, but gold is not like that.
Prior to this, the new bond king had pointed out that Bitcoin seemed to be in a bubble zone. He did not like Bitcoin, which was currently priced at a high level, and did not believe in Bitcoin.
However, his latest Twitter comments suggest that Bitcoin is gaining favor with institutional fund managers and could take money away from the gold market.
Nikolaos Panigirtzoglou, global market strategist at JPMorgan, also said that with this momentum, Bitcoin is competing with traditional gold as a form of digital gold.
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Tesla may make 6.5 billion by speculating in cryptocurrency <br />Behind the surge in Bitcoin, Musk may have become the biggest winner among players.
On January 29, Musk suddenly and briefly changed his Twitter profile to "Bitcoin," which directly caused the price of Bitcoin to rise by more than 14% in half an hour.
On February 9, Tesla disclosed in a filing with the U.S. Securities and Exchange Commission that it had purchased $1.5 billion worth of Bitcoin and would accept Bitcoin as a form of payment for purchasing cars.
As soon as the news came out, Bitcoin rose sharply, quickly breaking through the new high of $44,000, and then breaking through the $45,000, $46,000, and $47,000 mark...
This means that Tesla, which bought $1.5 billion worth of Bitcoin in January, would have made considerable paper gains if it had not sold it.
According to Wedbush Securities analyst Daniel Ives, Tesla made about $1 billion in paper profits from its investment in Bitcoin, more than it made from selling electric vehicles in all of 2020.
According to CoinDesk data, the price of Bitcoin has risen from an intraday high of $34,793.45 on January 31 to an intraday high of $57,487.03 on February 20, the day Ives released his report, an increase of about 65%.
This would bring Tesla's profit on its $1.5 billion Bitcoin investment to about $975 million, which is more than $1 billion (about 6.47 billion yuan) based on Monday's intraday high of $58,332.36.
Tesla's financial report shows that in 2020, their net profit attributable to the company's common shareholders was US$721 million, which is still some distance away from US$1 billion.
However, since Tesla did not disclose when they bought $1.5 billion worth of Bitcoin, it is not clear at what price they bought it, and their profits are currently unknown.
In addition, Tesla only disclosed that they bought $1.5 billion worth of Bitcoin in January, and it is not yet known whether they have sold it.
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Retail investors may face the risk of liquidation <br />Behind the surge in currency prices, some institutions believe that the current rise in Bitcoin is unsustainable, and more and more retail investors are facing new risks of liquidation.
On February 18, when Bitcoin rose above $52,000, data from Bitcoin Home showed that more than 50,000 people were liquidated that day, with a total liquidation amount of more than $2.7 billion. On February 22, nearly 95,000 people were liquidated in the last 24 hours, and the total liquidation amount in the entire network in the past 30 days reached $18.699 billion.

JPMorgan Chase recently issued a warning based on the high volatility of Bitcoin, believing that the current rise of Bitcoin is still at risk. Although it is driven by institutional investors, retail investors are also highly involved, and believe that there is not enough buying power to maintain the high level of Bitcoin. Unless the volatility of Bitcoin prices eases quickly, the momentum of the rise that has pushed its price to a record high of more than $50,000 is expected to be unsustainable.
Nassim Nicholas Taleb, author of the famous financial book "The Black Swan", also said that he has been dealing with the Bitcoin he holds. The reason is also simple: the volatility of a currency will never exceed what you buy and sell with it. You can't use cryptocurrency to price goods. "Bitcoin is a failure, at least for now."
According to Phoenix Finance, industry insiders Gu Yanxi and Wang Hui both mentioned that now is not a good time to enter the market to buy coins. "I think it's about time for Bitcoin to rise to 50,000 or 60,000 US dollars. Don't rush to 100,000 or 1 million US dollars. That's too far away."
They remind newcomers to the cryptocurrency world, such as Bitcoin, to avoid leverage and contracts as the risks are too great and could lead to a liquidation of the account and a loss of all capital. (Wall Street News)