Text/Beijing Business Daily reporter Liu Sihong

Bitcoin prices continue to hit record highs. On December 5, Beijing time, the price of Bitcoin continued to rise, successively rising above US$96,000, US$97,000, US$98,000, US$99,000, and US$100,000. As of 13:50 on December 5, Bitcoin was still rose, with the latest price at $102,200, a 24-hour increase of 6.1%.

The surge in Bitcoin has also led to the rise in other virtual assets. Among them, the latest price of Ethereum was reported at US$3,832, an increase of 4.67% in 24 hours, and an increase of 6.06% in a week. The latest price of Dogecoin was US$0.4364, an increase of 4.98%, and the increase in one month was as high as 188.02%.

Behind the 01 surge‍‍‍‍‍‍

Since the beginning of this year, Bitcoin has risen by a cumulative 156%. Since November, Bitcoin has risen directly from US$68,000 to US$100,000 in just one month.

Source: Feixiaoxia

What drives Bitcoin’s meteoric rise? Yu Jianing, co-chairman of the Blockchain Special Committee of the Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, said that from the history of Bitcoin, its price changes can be summarized as a "bull market triple jump", first led by retail investors The speculative bull market, accompanied by curiosity about technology and speculative investment sentiment, prompted the price of Bitcoin to fluctuate and rise in the early stages. Subsequently, with the entry of institutional investors, especially after asset management companies and financial institutions allocated through financial products such as ETFs, Bitcoin's status gradually evolved from a "speculative tool" to an investment asset available for allocation, which constituted Second stage bull market momentum.

This round of rising Bitcoin prices clearly marks the entry into the third stage of the "bull market triple jump", which is recognition and support from some levels. This makes Bitcoin gradually become a potential choice for global reserve assets, pushing it into a new bull market stage.

In the news, U.S. President-elect Trump chose a virtual asset advocate and veteran Financial regulator Paul Atkins serves as chairman of the U.S. Securities and Exchange Commission. After the news was announced, a number of virtual assets rose in the short term.

In addition, not only the United States, there are market reports that Russian President Putin has also publicly expressed support for virtual assets. In addition, Putin officially signed an important law that clearly identifies virtual assets as “property” and establishes a comprehensive tax framework for virtual asset trading and mining activities. This law will be officially implemented on January 1, 2025, marking a key step in the field of virtual asset supervision and taxation in Russia.

02.21 million people liquidated their positions

As prices soared, some speculators suffered losses . Coinglass data shows that in the past 24 hours, a total of 214,220 people have been liquidated, with a total liquidation amount of US$668 million. Among them, there are both shorts and bulls.

Source: Coinglass

It should be reminded that in virtual asset trading, high leverage not only magnifies potential returns, but also increases risks.

As the price of Bitcoin continues to rise, market sentiment has also heated up. So after this price rises above $100,000, how much room for growth is there? In this regard, Yu Jianing believes that from the current market fundamentals, Bitcoin still has considerable room for growth. The global macro-environment, especially geopolitical uncertainty, coupled with the gradual decline in trust in the traditional legal currency system, has prompted more and more institutions and institutions to explore the option of incorporating Bitcoin into asset allocation and foreign exchange reserves. This trend will bring larger capital inflows and provide basic support for Bitcoin's further rise.

But Yu Jianing also pointed out that after Bitcoin breaks through the $100,000 milestone, it is difficult to accurately estimate the height of the peak. In a bull market, over-speculating on highs is not a rational strategy. What is really important is to recognize the fundamental changes and developments that support its value.

Although the price of Bitcoin has risen, the risks lurking behind it cannot be ignored. Yu Jianing pointed out that investors need to pay special attention to avoid excessive risk-taking and emotional operations. In particular, highly leveraged transactions carry significant risks in the virtual asset market. Although they may bring short-term high returns,Severe losses can also result when prices fluctuate wildly. Digital assets are extremely volatile. Using high leverage will not only magnify returns, but also exponentially increase the risk of losses, and even lead to a complete loss of funds in a short period of time. Therefore, investors should maintain moderate risk exposure and avoid high-leverage operations to ensure that they are not forced to liquidate their positions when the market fluctuates.

Secondly, FOMO (fear of missing out) often spreads in bull markets, causing investors to chase prices at market highs and thus face larger prices. Pullback risk. In the virtual asset market, investment behavior that blindly follows the trend often leads to the dilemma of buying high and selling low. It is particularly important to maintain rational investment judgments based on fundamentals. Investors need to realize that every rise in the bull market is based on market fluctuations, and avoid neglecting long-term investment logic and risk management by chasing short-term price increases.

Pan Helin, a well-known economist, also pointed out that Bitcoin is a highly speculative asset. When Bitcoin is highly volatile, its price will also fall rapidly. Although the gameplay of beating drums and passing flowers is very attractive, it is not suitable for ordinary investors.