Lao Ma, an experienced traditional trader, recently reduced his position in Bitcoin by 70%. He said that he felt panicked in the face of the recent crazy rise in Bitcoin, and reminded investors to be wary of risks and make prudent investments.

The following are the reasons why Lao Ma reduced his position:
Bitcoin price skyrocketed without a pullback, shattering all indicators. This makes Lao Ma feel uneasy and worried that there may be a major adjustment in the market. Options trading is extremely risky. Lao Ma recently made a lot of money in options trading, but he also almost lost his position. This made him realize that although option trading can magnify returns, it also comes with huge risks.

Lao Ma’s advice to investors:
Don’t blindly chase highs, but do a good job in risk control. Especially in a bull market, investors should stay calm and not be blinded by greed. Don’t use high leverage. Although high-leverage trading can magnify profits, it may also lead to liquidation and heavy losses. Hedge well to reduce risk. For example, you can buy a certain amount of put options to prepare for a callback.

Lao Zhang’s actions to reduce positions also remind all investors: The cryptocurrency market has huge risks. Investors should invest cautiously and not blindly chase the rise and fall.

Here are some factors that may affect Bitcoin’s future trends:

1. Federal Reserve Monetary Policy
2. Global economic situation
3. Cryptocurrency regulatory policy and market sentiment

Investors need to pay close attention to these factors and make rational investment decisions.