What Determines the Rise and Fall of Huobi?

What determines the rise and fall of Huobi Editor’s Note: This article comes from the Fenghuolun Community (ID:FHBT18), author: Peipei, authorized to be reprinted by Odaily Star Daily.

Hello everyone, I am Xiao Ai. Today, let’s talk about the recent hot topics in the cryptocurrency market. Yesterday and recently, some friends asked me about my views on the recent cryptocurrency market:

Actually, many people often claim to be “bitcoin whales,” but they have never really thought about whether to buy or sell these mainstream tokens. I think this kind of statement is somewhat wrong because there is no absolutely safe place in the crypto world, and it is also prone to hacking or manipulation. For example, in 2017, there was a large hacker group called Bitmex Exchange, but they never had a case of having billions of funds. They always believed that this crash would make the market even crazier. However, this has now become a problem: “Why did such a situation occur?” Because if you can find institutions that can truly affect the market, it means that there are many retail investors in the market, especially those who are unfamiliar with blockchain may think they are trading digital assets and do not know what concepts they can invest in. Some people only buy certain virtual currencies for speculation, “Do you know what it is?” and so on.

Therefore, the problem here is obvious: firstly, most people do not know much about cryptocurrencies such as Bitcoin and altcoins, let alone whether they have a certain transaction volume, security, and liquidity, which is a significant point; secondly, with the development of the market, more and more new projects come in, and it will also attract a new group of users, which may lead to a further increase in the balance point between price rise and fall.

In addition, many analyses of Bitcoin price trends have their own ways of thinking: If someone studies what determines the fluctuation of Bitcoin, there are mainly the following factors: 1. Bitcoin is not affected by regulation itself, and its volatility is much lower than other altcoins; 2. The role of Bitcoin in the traditional financial system, due to its high uncertainty and risk characteristics, so Bitcoin has a high possibility as a global asset. On the other hand, Bitcoin is not issued by a specific industry dominated by the government, and its circulation is limited. In other words, it cannot guarantee complete security and can only rely on national policies for maintenance; 3. Bitcoin has not been issued by any large technology company, and it cannot directly obtain corresponding cash flow through centralized custodians. This means that Bitcoin may be subject to strict supervision by regulatory agencies of various countries, including China, the United States, Russia, and Japan. Although such practices do have some misunderstandings, at least in theory, they are feasible.

In summary, no matter how you look at the market trends after the hype, it will bring people a great sense of panic.