A few days ago, the price of Bitcoin hit a record high again, breaking through the $63,000 mark for the first time.
On the news, Coinbase, the largest cryptocurrency exchange in the United States, will be listed directly on the Nasdaq exchange on April 14, and will soon become the first share of the U.S. cryptocurrency platform. Currently, Coinbase is valued at up to 100 billion U.S. dollars.
The violent fluctuations in the price of cryptocurrencies have also led to a sharp increase in the amount of liquidation. According to data from Bitcoin Homes, in the past 24 hours, a total of 135,400 people in the cryptocurrency market have liquidated their positions, with a liquidation amount of US$928 million, or approximately RMB 6.075 billion.
Breaking through US$63,000 for the first time, and 130,000 people broke their positions
On April 13, the cryptocurrency market boiled again. The price of Bitcoin broke through the US$63,000 mark for the first time, setting a new record high, rising by more than 5% within 24 hours; Ethereum also exceeded US$2,200 per coin, setting a record high, 24 The hourly increase is more than 6%.
The violent fluctuations in the price of cryptocurrencies have also led to a sharp increase in the amount of liquidation. According to data from Bitcoin Homes, in the past 24 hours, a total of 135,400 people in the cryptocurrency market have liquidated their positions, with a liquidation amount of US$928 million, or approximately RMB 6.075 billion. The largest single liquidation order occurred on Bitmex-XBTUSD, a liquidation of 10 million US dollars, or about 65.49 million yuan.
On the news, Coinbase, the largest cryptocurrency exchange in the United States, will be listed directly on the Nasdaq exchange on April 14, and will soon become the first share of the U.S. cryptocurrency platform. At present, Coinbase is valued at as high as 100 billion US dollars, more than the old exchanges, the New York Stock Exchange and the Nasdaq combined.
According to the document, in 2020, Coinbase achieved revenue of US$1.277 billion, a year-on-year increase of 128%; net profit was US$322 million. About 85.8% of Coinbase’s revenue comes from customer transaction fees. In 2020, Coinbase’s cryptocurrency trading volume is approximately US$193 billion, an increase of 141.7% from 2019. As of December 31, 2020, the number of verified users on the platform was 43 million, a year-on-year increase of 34.4%.
Since 2021, cryptocurrency prices have continued to accelerate, and Coinbase’s number of users and profitability have also increased significantly. The latest financial report shows that in the first quarter of this year, Coinbase added 13 million new users, and the total number of registered users reached 56 million; the company achieved revenue of 1.8 billion US dollars in the first quarter, a year-on-year increase of over 800%, and exceeded the 1.3 billion US dollars in 2020. Revenue; Net profit in the first quarter was 730 to 800 million U.S. dollars, compared with 31.9 million U.S. dollars in the same period last year, a sharp increase of nearly 25 times.
Coinbase said that given the increased interest of institutional investors in crypto assets, it is expected that trading and custody revenue will drive significant growth in the company’s 2021 performance.
Analysts believe that with the continuous entry of traditional financial institutions and Internet giants, the value of the cryptocurrency field is expanding. The successful listing of Coinbase will make investors in the traditional field pay more attention to the cryptocurrency market.
Tesla’s “buy currency” floats 7.9 billion yuan, 66% higher than the profit of making cars
As of press time of the brokerage China reporter, the price of Bitcoin was reported to be 63,193 US dollars per coin, up 5.28% within 24 hours, and the market value was approaching 1.2 trillion US dollars, or about 7.94 trillion yuan. The sum of the market value of more than 3 Moutai, ranked among the global market value. Sixth, it is second only to Apple, Microsoft, Saudi Aramco, Amazon and Google, and exceeds the market value of companies such as Facebook, Tencent, Tesla, and Alibaba.
Previously, on February 8, Tesla submitted documents to the US Securities and Exchange Commission that the company purchased $1.5 billion worth of bitcoin. According to estimates, Tesla’s cost of buying Bitcoin is less than US$35,000. As of now, Tesla’s floating profit exceeds 80%, and the floating profit exceeds US$1.2 billion (approximately 7.9 billion yuan). For the full year of last year, Tesla’s net profit was US$721 million. This means that Tesla’s “money speculation” earns 66% more than the net profit of car manufacturing in 2020.
Tesla CEO Musk is known as the “carrying king” of Bitcoin. At the end of January this year, after Musk changed his Twitter profile to “Bitcoin”, Bitcoin saw a single-day increase of nearly 20%. On February 8th, after Tesla’s purchase of bitcoins was made public, the price of bitcoins skyrocketed again. On the same day, bitcoin rose by 18.8%, surpassing $46,000 per coin. On March 24, Musk announced on Twitter that Tesla can buy with Bitcoin, and the Bitcoin paid to Tesla will be kept as Bitcoin instead of being converted into legal tender.
Meitu made 186 million yuan, three times last year
Cai Wensheng, chairman of Meitu, is also a loyal fan of Bitcoin. Its Hong Kong-listed company, Meitu, has purchased cryptocurrencies three times in a row.
On March 8, Meitu, the parent company of Meitu, a Hong Kong-listed company, announced in a high-profile manner that it would purchase 15,000 Ether and 379 Bitcoin (BTC) on March 5, the two cryptocurrencies. The total consideration is approximately US$22.1 million and US$17.9 million, respectively, for a total of US$40 million (approximately RMB 260 million).
Subsequently, Cai Wensheng posted in Moments that Meitu continued to deploy the blockchain. Cai Wensheng said: “Someone must be the first to eat the crab. This should be regarded as the first Hong Kong listed company to purchase BTC digital currency, and it can also be regarded as the world’s first listed company to use ETH as a currency value reserve.”
On March 17, Meitu purchased 16,000 Ethereum and 386.0858 Bitcoin through its wholly-owned subsidiary Miracle Vision, with a total consideration of US$28.4 million and US$21.6 million, respectively.
On April 8, Miracle Vision further purchased 175.678 units of Bitcoin, with a total consideration of approximately US$10 million.
As of April 8, Meitu has accumulated a net purchase of cryptocurrencies worth about 100 million U.S. dollars. According to calculations, Meitu purchased 940.885 bitcoins at a total cost of US$49.5 million, at a cost of approximately US$52,600 per coin, with a floating profit ratio of 20% and a floating profit of US$9.7 million (about 65.28 million yuan);
In addition, Meitu spent a total of US$50.5 million to purchase 31,000 Ether at a cost of approximately US$1,629 per piece, with a floating profit ratio of 36.46% and a floating profit amount of US$18.41 million (approximately RMB 121 million). This means that Meitu’s investment in Bitcoin and Ether has reached a floating profit of 186 million yuan, which is three times the total net profit of Meitu in 2020 of 60.9 million yuan.
Regarding the reason for buying cryptocurrency, the board of directors of Meitu stated that cryptocurrency has enough room for appreciation, and at this time, by allocating part of its cash reserves to cryptocurrency, it can be used to diversify the risk of holding cash in fund management (due Central banks around the world have substantially increased their money supply in terms of capital management, resulting in devaluation pressures).
More importantly, the Board of Directors of Meitu believes that this can show investors and stakeholders the ambition and determination of the group to accept technological innovation, so as to prepare for entering the blockchain industry.
Experts remind: the risk is high, don’t blindly follow suit
As more and more institutional investors (including traditional financial institutions and Internet companies) enter the market, the cryptocurrency market is also rising. Since last year, the price of cryptocurrencies has continued to rise. Bitcoin has risen from US$71.95 million per coin at the beginning of 2020 to US$63,193.62 per coin today, an increase of 7.78 times. Recently, the global market value of cryptocurrencies hit a new high of 2 trillion US dollars.
It is worth noting that cryptocurrencies such as Bitcoin are speculative assets, which have neither the credit of national sovereignty nor the status of legal tender, and the application prospects are very uncertain.
The regulatory authority clearly stated that from the perspective of Bitcoin being a specific virtual commodity, there may be a higher risk of speculation, a higher risk of money laundering, and the risk of being used by criminals or organizations.
Jesse Powell, CEO of US virtual currency trading giant Kraken, warned that governments may start to crack down on virtual currencies such as Bitcoin. Powell said that the virtual currency market still faces many uncertain factors in government regulation, and these hidden worries are difficult to dissipate in the short term.
Citi’s recent report also pointed out that for digital currencies, changes in regulatory policies are the biggest risk. If regulations are tightened, some speculative funds will return to the gold market.
Fed Chairman Powell recently stated that cryptocurrencies have no value support and that crypto assets are highly volatile and speculative. The current global stable currency supervision is not in place and cannot be used as a substitute for the U.S. dollar.
Dong Dengxin, director of the Institute of Financial Securities at Wuhan University of Science and Technology, believes that Bitcoin, as a new thing, has its technical content to a certain extent. However, there are still great risks in using it as an investment application. It is recommended that ordinary people without relevant professional knowledge do not blindly follow the trend to “bo silly” and “beat the drum to spread flowers.” At the same time, we must also see that the current central banks of various countries are promoting the digitization of their currencies, so the chances of the legal use of Bitcoin in the future are very small.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.