In today's financial market, Bitcoin is still a controversial topic. Although some investors are confident in it and believe that it is the representative of the future digital currency, there are also many "air force" investors who are skeptical about it and even choose to short Bitcoin. For these short sellers, market volatility and future uncertainty are undoubtedly huge challenges. However, shorting Bitcoin has both risks and opportunities. This letter aims to warn Bitcoin air force investors and urge them to review their investment strategies.

First of all, we must make it clear that Bitcoin is not a simple investment tool. Its price is extremely volatile and is affected by many factors, including market sentiment, policies and regulations, and technological development. According to historical data, the price of Bitcoin reached a peak of nearly $20,000 in 2017, but then experienced a sharp correction and fell to around $3,000. Such drastic price fluctuations make investors who short Bitcoin face huge risks.

When analyzing the Bitcoin market, we cannot ignore the technical foundation behind it. Blockchain technology, as the core support of Bitcoin, gives it a unique decentralized feature. This means that Bitcoin is not controlled by any single institution, and its transaction records are open, transparent, and cannot be tampered with. This feature makes Bitcoin a tool to fight against the traditional financial system to some extent. Many investors are optimistic about this and believe that the value of Bitcoin will continue to increase with the popularization of blockchain technology.

However, investors who short Bitcoin often overlook this point. They may focus too much on short-term market fluctuations and fail to deeply analyze the long-term potential of Bitcoin. For example, although the price of Bitcoin has fallen sharply at certain moments, its price trend is often upward in the long run. According to relevant data, Bitcoin has had an average annual growth rate of more than 200% since 2010. This means that even if the price fluctuates sharply in the short term, investors who hold Bitcoin for a long time can often get considerable returns.

In addition, changes in policies and regulations are also an important factor affecting the price of Bitcoin. Countries have different attitudes towards digital currencies. Some countries actively embrace digital currencies and believe that they are an important part of the future financial system; while other countries have adopted a relatively conservative attitude and even banned the use of Bitcoin. For example, China completely banned ICO and digital currency transactions in 2017, causing the price of Bitcoin to fall sharply. However, as time goes by, the regulatory policies of various countries on Bitcoin are also changing, and many countries have begun to explore how to reasonably use Bitcoin and the technology behind it. Such policy changes not only affect market sentiment, but also provide new opportunities for the future development of Bitcoin.

In terms of market sentiment, the price of Bitcoin is often affected by investor psychology. When most people are optimistic about Bitcoin, the price tends to rise rapidly; once negative news appears, investor panic may trigger a massive sell-off. This emotional fluctuation allows investors who short Bitcoin to make profits in the short term, but in the long run, investment strategies that rely too much on market sentiment are often dangerous. There have been countless examples in history that show that rapid changes in market sentiment often lead to significant losses for investors.

Of course, investors who short Bitcoin can also look for investment opportunities through technical analysis. Technical analysis mainly uses historical price and volume data to predict future price trends. Many successful traders use various technical indicators, such as moving averages, relative strength index, etc., to determine the market's buy and sell signals. However, technical analysis is not foolproof, especially in a highly volatile market like Bitcoin, where any technical indicator may fail. Therefore, it is very unwise to rely on a single technical analysis for investment decisions.

At the same time, investors should also pay attention to the market liquidity of Bitcoin. Liquidity refers to the ease of buying and selling assets in the market. The higher the liquidity, the smaller the price fluctuations. As an emerging asset, Bitcoin has relatively low market liquidity, which may lead to sharp price fluctuations. In the case of insufficient liquidity, investors who short Bitcoin may face greater risks. Especially when the market is in panic, the stop loss position of short investors may be quickly penetrated, causing greater losses.

For Bitcoin bears, it is very important to have a deep understanding of market dynamics and technical analysis. At the same time, they also need to reflect on their investment strategies. Should they hold a certain proportion of Bitcoin as a hedge investment? Should they trade frequently in the short term, or is it more suitable to hold for the long term? These questions are worth every investor's serious consideration.

Here, we should also realize that the future of Bitcoin is not all bright. Although it has strong technical support, market changes and policy risks still exist. Therefore, investors who short Bitcoin must remain vigilant and adjust their investment strategies in time to cope with market changes. Whether it is bullish or bearish, rational investment and living within one's means are the best strategies to deal with market risks.

Finally, I hope this letter can prompt Bitcoin Air Force to re-examine their investment decisions. As an emerging asset, Bitcoin is not only a tool for speculation, but also an important part of the future financial system. No matter how the market changes, only by maintaining an attitude of learning and thinking can you remain invincible in a market full of uncertainty.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Still shorting Bitcoin? A warning letter to Bitcoin short sellers. Founder Zhao Changpeng announced on Twitter yesterday that the platform had its first margin liquidation since the launch of the margin trading function last month. This is not good news for short sellers. After all, Bitcoin has risen sharply to $11,000 in recent days, and this time it is the short positions that were liquidated.
A warning to the Air Force
On May 31, Binance launched a beta version of its trading website, which includes a new user interface and a margin trading function. The beta version of the Binance trading website shows that it will provide
Margin trading of 9 trading pairs including BNB/BTC, BNB/USDT, BTC/USDT, etc.
Given that the liquidation price will be set quite high, a short position with 2x leverage is a safe choice for risk-averse traders. But now it seems that the Bitcoin Air Force has unfortunately seriously underestimated the power of the "Coin King".
Therefore, Zhao Changpeng issued a warning to traders who short Bitcoin, saying:
“Don’t short Bitcoin, don’t short [BNB].”
Margin trading = gambling?
Before Binance, global leaders such as Kraken, Poloniex and others had already provided margin trading services to users.
But the leader among them is BitMEX, a bitcoin futures contract trading platform that offers users up to 100 times leverage, and whose co-founder Ben Delo has become Britain's youngest billionaire.
On April 2, the price of Bitcoin began to rise sharply, soaring from less than $4,200 to around $5,000. While the market was rejoicing in this thrilling rise, BitMEX investors who held speculative and leveraged short positions in XBTU19 futures contracts broke the news that their positions were automatically closed.
Edward Morra, a Twitter blogger, posted that “On BitMEX alone, about $500 million worth of short positions were liquidated.”
Recently, Hui Yi, co-founder of the digital currency analysis platform BitEasy, was suspected of suffering a margin call due to a 100x leverage. He chose to commit suicide due to the loss of nearly 2,000 bitcoins (about 100 million yuan), which sounded a wake-up call for investors.