“Honey! Bitcoin has surpassed $120,000!” I rushed into the living room, waving my phone, my voice trembling with excitement. My wife looked up from the TV drama, her eyes brightening: “So how much did you make? Isn’t it time to get a new car?”
My smile instantly froze, my fingers swiping through the transaction records on the screen, cold sweat trickling down my forehead: “This... that... actually still down by 30%...” The living room fell silent. My wife's gaze turned icy: “You lost money even when it hit a historical high? Tonight you kneel on the keyboard and explain clearly to me!”
On the night Bitcoin hit $120,000, I knelt in tears, shattered my keyboard, and admitted to my wife: I really didn't make any money!
Keyboard fragments scattered all over the living room, I knelt in the middle and swore to my wife: The myths of the cryptocurrency world belong to others; my account only showcases the art of human loss.
The $120,000 Bitcoin is like a golden bomb, exploding the frenzy of global investors and also triggering a crisis in my living room's floor. Watching my wife hold the broom with an imposing figure, I took a deep breath—it's time to unveil the most magical truth of the cryptocurrency world.
Profits but still losing? The magical realism of the cryptocurrency world
The Bitcoin price curve has taken off. On July 11, this digital gold broke through the $118,000 mark for the first time, with a year-to-date increase of over 20%. The total market capitalization of the global crypto market soared to $3.7 trillion, with a 24-hour trading volume exceeding $200 billion. Amid this prosperous scene, I became the typical ‘spendthrift’ holding everyone back.
Passengers on the price roller coaster. Data shows that about 40% of cryptocurrency investors lost money in the past year. The Coinglass platform indicates that within 24 hours of Bitcoin hitting a new high, 119,700 people globally faced liquidation, with a total liquidation amount reaching $541 million. Moreover, on July 11 alone, 270,000 people were collectively liquidated, and $1.25 billion vanished into thin air.
Why does the surge still lead to wallet shrinkage? The secret lies in the devilish details of investment:
The fate of high-position buyers. In November 2021, when Bitcoin reached $69,000, countless investors flocked in. When the market suddenly dropped and assets quickly shrank, they ultimately had to cut losses and exit. Similar plots repeat after each surge—investors chase high prices during market frenzy, and when prices correct, their assets shrink significantly.
The deadly temptation of contract trading. Many investors find it hard to resist the allure of contracts, unaware that it is akin to dancing ballet on a tightrope. On the day Bitcoin broke through $112,000, $280 million worth of Bitcoin shorts were liquidated at a critical resistance point, triggering a chain reaction. Contracts magnified profits but also amplified risks, with market fluctuations leading to double explosions of both long and short positions becoming the norm.
Hands full of illiquid altcoins. Bitcoin reaches new highs, yet altcoins remain stagnant, impossible to enter or exit. Most ordinary investors are equipped with altcoins, which have data but no value. What was intended to yield tenfold returns ended up losing tenfold of the principal.
Five major loss traps, the bloody history of cryptocurrency investors
Kneeling on the keyboard fragments, I showed my wife the 'loss map' on my phone, those investment black holes becoming clear.
The dark forest of market manipulation. The Bitcoin market is relatively opaque and lacks effective regulation. Manipulative behaviors like large capital 'crashing' or 'lifting' prices trigger severe fluctuations. Ordinary investors often find themselves at an information disadvantage, becoming targets for being 'cut like chives'. When seeing certain altcoins surge 19% in a single day, don't be quick to cheer—this could be a hunting bait.
The sword of Damocles of policy risk. The uncertainty of global regulatory policies always looms large. A certain country once completely banned Bitcoin trading, causing a sharp drop in Bitcoin prices. Now, the U.S. (GENIUS Act) is about to be implemented, and (CLARITY Act) will also be delivered to the Senate. Any breeze or grass movement in regulatory policies could trigger an earthquake in the market.
The Achilles' heel of technical security. Just as Bitcoin reached a new high, the V1 system of the decentralized trading platform GMX was attacked on the Arbitrum network, resulting in a loss of about $42 million. Risks such as hot wallet hacks, private key loss, and operational errors could turn digital assets into nothing at any moment.
The devil's triangle of investment psychology:
• Greed-driven chasing: blindly following the trend during market upswings, buying at high positions
• Fear-driven cutting losses: panic selling when prices fall back, resulting in actual losses
• The misleading influence of herd mentality: blindly following the trend without independent judgment
The absence of risk management. Many investors do not set stop-loss strategies. When the market trend is unfavorable, they cannot timely control losses. More critically, unreasonable asset allocation leads to excessive concentration of investment in Bitcoin. Once problems arise in the market, the overall assets face tremendous risks.
The future maze, the double-sided game of Bitcoin investment
“Since it's so dangerous, why are people still buying?” My wife put down the broom, her tone filled with confusion. I rubbed my aching knee and pulled up the institutional holding chart—there lies another possibility for Bitcoin.
The golden offensive of institutional armies. Since the approval of the U.S. spot Bitcoin ETF in 2024, institutional investors have poured in through ETFs. As of July this year, global Bitcoin ETF inflows have exceeded $50 billion, and BlackRock's IBIT spot Bitcoin ETF's assets under management have surpassed $30 billion, holding over 700,000 BTC.
The craze of listed companies hoarding coins. According to a Bitwise report, by the end of June, 125 publicly listed companies globally held 847,000 Bitcoins, accounting for 4.03% of the total Bitcoin supply. MicroStrategy alone holds over 220,000 Bitcoins, accounting for more than 1% of Bitcoin's circulating supply.
The dawn of a regulatory framework. With the arrival of the 2025 'Crypto Legislative Week', the U.S. (GENIUS Act) is about to be delivered to the President, providing institutional protection for crypto asset holders and users. The updated market pricing rules from the Financial Accounting Standards Board allow institutions to re-measure crypto assets at fair value, significantly enhancing the motivation for institutions to hold cryptocurrencies.
A new logic of global economic hedging. Dr. Gao Chengshi in cryptography points out that global political uncertainty continues to strengthen, and stablecoins and Bitcoin have become safe havens against domestic currency depreciation. In South America, Africa, and Southeast Asian countries, Bitcoin is becoming a tool for hedging geopolitical and credit risks.
The head of digital assets research at Standard Chartered Bank predicts that Bitcoin prices may break through $135,000 in the third quarter, with a potential rise to $200,000 by the end of 2025. Bitwise CIO Matt Hougan is even more optimistic, expecting Bitcoin to break through $200,000 by the end of the year.
Survival guide for ordinary investors
“Can we still touch Bitcoin?” My wife's tone had shifted from anger to worry. I struggled to stand up, leaning on the sofa, and opened the investment plan on my computer.
The principle of cognitive precedence. Researcher Wang Yingbo from the Shanghai Academy of Social Sciences pointedly states: Bitcoin is more of a speculative asset, its price entirely depends on market consensus. Any investment behavior that has not been deeply studied or understood is no different from blind speculation.
The iron rule of risk control:
• Position management: Do not invest more than 5% of investable assets
• Stop-loss discipline: set strict stop-loss lines and enforce them resolutely
• Diversified allocation: Avoid having a single asset occupy too high a proportion of the investment portfolio
The essential course on secure storage. Bitcoin wallets are divided into hot wallets (connected to the internet) and cold wallets (offline storage). Hot wallets are convenient but high-risk, while cold wallets are safe but must be protected against loss. For ordinary investors, choosing a reputable trading platform and enabling two-factor authentication are basic safety measures.
Beware of high-return scams. Recently, the Beijing Internet Finance Industry Association warned that criminals pretend to use 'financial innovation', 'blockchain technology', and other gimmicks to hype so-called 'virtual currency' and 'stablecoin investment projects', promising high returns to lure the public into investing. Remember: any promotion of 'no risk, high return' is a sign of fraud.
It was late at night. My wife looked at the candlestick chart of Bitcoin with a spike breaking through $120,000 and sighed softly: “Forget it, consider it tuition fees.” She turned and walked into the bedroom, then paused and looked back: “But you still have to kneel on the keyboard—until you truly learn risk control!”
In the living room, I carefully avoided the keyboard fragments on the floor, pulling up the asset allocation chart in front of the computer. Outside, the wealth myth of Bitcoin continues; inside, an ordinary investor begins to truly understand: in the cryptocurrency world, respecting risk is more important than chasing high profits.
