After more than a year of continuous surge, Bitcoin has reached 65,000 dollars. All the bulls have made a lot of money. They are making a lot of money. There is an endless stream of people who have made dozens, hundreds, or even a thousand times.
All outsiders will try their best to rush into the circle, and your relatives and friends will also chase you to ask how to buy coins.
However, on May 18, 2021, the central bank and the three major financial industry associations suddenly issued an announcement on illegal financial activities in virtual currency trading services. This news sent the currency circle into turmoil.
The market looked relatively stable that day, and even rose slightly. However, by the afternoon of May 19, the price of Bitcoin had fallen by $4,000. I couldn't control my excitement and even started to buy the dips and go long. Because I had a meeting in the evening, in order to avoid liquidation, I used all my funds as margin. Since I had made a lot of money in the previous bull market, I was overconfident and thought that such a large margin would be absolutely no problem.
After the meeting, I opened the trading software and found that there was no money in my account. I thought it was a display error until I saw the deep needle, a needle that was almost cut in half! On that day, Bitcoin fell from $44,000 to $29,000, a drop of 34%. Almost all tokens on the market were hit hard, and the currency circle was a bloodbath. The killing power was no less than 94 and 312, because there were too many people who lost money.
During this period, mines were shut down, mining machines went overseas, and financial institutions were removed from the shelves, and the currency circle fell into panic. Leeks began to doubt whether the bull market was over. This incident known as 519 had a huge impact on the currency circle, and the aftershocks are still continuing to this day. Leeks will never forget the fear of being controlled by 519.
After 519, the surviving short sellers saw an opportunity and shorted, thinking they could make a fortune by shorting for a few years. However, Bitcoin suddenly reversed and hit a new high again, soaring to $67,000. This violent fluctuation almost cleared out 90% of the short sellers in the market, and then reversed again, opening a bear market, and the remaining long sellers were also slaughtered again.
When it comes to ordinary players, even in a big bull market, only a few can cash out all their chips. Most people will take over at a high position, dreaming about the next new high, and have been trapped for many years.
The last thing to remind us is that many people are full of confidence when they enter the currency circle, regard it as paradise, and expect to get rich overnight. However, little do they know that there is only a thin line between heaven and hell. Only a lucky few can truly enter heaven.
The 519 incident in the currency circle has sounded the alarm for us, reminding us to stay calm and rational in investment. Market volatility is unpredictable and risks always exist. We should choose investment projects carefully, follow reasonable risk management strategies, and avoid being too greedy and blindly optimistic. Only in this way can we obtain better investment experience and returns in the currency circle.
