Bit was trading at around $118,400 on the afternoon of the 11th Taiwan time, reaching a historic high. Within a few minutes, the global exchange trading volume rapidly expanded, indicating market confidence in decentralized assets is at its peak.
Bit successfully broke through the key resistance of $112,000, forming a solid support in the $106,000 to $108,000 range, with limited resistance above.
CZ: Opportunities for decline are common, scarcity is the core
Binance founder CZ reminded investors on social media:
"If you missed previous declines, there will be opportunities to buy during future declines. We are currently in a decline. Mathematical numbers or fiat currency printing have no limit, only Bit's quantity is limited."
CZ's implication is to encourage investors to face the market with patience and research, rather than chasing short-term fluctuations. He emphasized that Bit's total supply is only 21 million, with over 95% already mined; compared to the US dollar's supply increase of over 30% since 2020, scarcity is Bit's most critical value basis.
Risks and Long-term Significance
While Bit's scarcity provides upward momentum, volatility remains significant. As mining rewards decrease, miners' income will depend more on transaction fees, and the importance of scaling technologies like Lightning Network will simultaneously increase. The Economic Times statistics show that large investors now control about 10% of Bit; if more institutions join, the limited supply will continue to drive prices higher. However, investors still need to assess their own risk tolerance and maintain financial discipline.
Reviewing this new high, institutional funds, supply constraints, macro concerns, and scarcity narratives are resonating with each other. Facing a constantly changing market, Bit offers a completely different option from traditional fiat currency through hard limits and transparent mechanisms; however, as long as volatility exists, each correction after a new high tests investors' patience and judgment.
