How much would you earn if you shorted Bitcoin 5 times and fell by half?

Short Bitcoin 5 times, and the profit rate will be 80% if the price drops by half. The detailed calculation is as follows: 1. Borrow 5 Bitcoins to cash in; 2. After the price drops by half, repurchase 2.5 Bitcoins to compensate; 3. After interest expenses are subtracted, the actual profit rate is less than 80%, depending on the exchange and Loan period.

How much can you earn by shorting Bitcoin 5 times and falling by half?

Short Bitcoin 5x, when the price falls by half, the profit margin is:

利润率 = (5 - 1) / 5 * 100% = 80%

Detailed calculation:

• Short 5x: Borrow 5 Bitcoins, sell them at the current price.
• Price Dropped by Half: Bitcoin price dropped 50% from its value at the time of sale.
• Buy Catchback: Use 5 borrowed Bitcoins to buy back 2.5 Bitcoins.
• Cost recovery: Repaying 5 borrowed Bitcoins costs 2.5 Bitcoins.
• Profit: 2.5 Bitcoins - 2.5 Bitcoins = 0 Bitcoins.

However, since short selling requires interest fees, the actual profit margin will be less than 80%. Interest charges vary by exchange and loan term.

Example:

Suppose you borrow 5 Bitcoins with an annual interest rate of 10% and a loan period of 1 month.

• Interest fee: 5 0.10% 30 / 365 = 0.0411 Bitcoin.
• Actual profit: 0 Bitcoin - 0.0411 Bitcoin = -0.0411 Bitcoin.

So in the example above, shorting Bitcoin 5x due to interest charges, the actual loss would be around 4.11% when the price drops by half.

Bitcoin Price Rising

Currently, the price of Bitcoin is $271.65 with a 24-hour trading volume of $381.1 billion. Bitcoin has gained 2.71% in the past 24 hours.

Factors leading to price changes

Factors driving Bitcoin’s rise may be:

• Increased optimism in global markets
• Improvement in the regulatory environment

Future Outlook

For the future price trend of Bitcoin , analysts have different opinions. Some believe it will continue to rise and hit all-time highs, while others believe it will trade sideways or pull back.

Investor Advice

• Do your own research before investing
• Only invest money you are willing to lose
• Diversify your portfolio
• Consider buying when the market is down and selling when the market is high

Short Term Forecast

In the short term, Bitcoin is likely to trade sideways or rise modestly. However, it could continue to move higher in the coming months as economic conditions improve and the regulatory environment becomes clearer.

Indicators

• Price: 65271.65 USD
• Trading volume: 381.1 billion USD
• Circulation: 19726837 BTC
• Maximum supply: 21 million BTC
• Market cap: 1287.6 billion USD

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