Looking back, every surge in Bitcoin prices has been a precursor to significant losses.

Bitcoin's price has experienced drastic fluctuations in recent years. For example, in 2021, Bitcoin's price reached nearly $65,000 in April, but in the following months, it dropped back to around $30,000. Such price swings create significant uncertainties for investors. Bitcoin's multiple retracements to $0.1 million in 2024 have drawn attention in the market, but can this volatility really be a guarantee for long-term investments?

Bitcoin's price is fundamentally driven by market sentiment and speculative behavior, lacking strong fundamental support. In comparison to traditional assets like Stocks and Bonds, which have relatively clear value foundations and income models, Bitcoin's value mainly depends on supply-demand dynamics and market speculation. According to Chainalysis' report, about half of Bitcoin holders did not consider its intrinsic value when purchasing, solely focusing on market sentiment and short-term profit expectations. This makes Bitcoin's long-term stability more fragile.

As Bitcoin and other Cryptos become more popular, countries are gradually tightening regulations on their supervision. The regulatory policies of American Financial institutions towards the Cryptos market remain unclear, leading to investor uncertainties. The Biden administration has also hinted at further regulating Cryptos, which could directly impact Bitcoin's price. Despite Trump's current positive outlook on Bitcoin, he has been skeptical about Cryptos during his term, causing unease among investors entering the market.

Bitcoin's trading platforms face security risks, an important consideration for investors. Over the past few years, several well-known Cryptos exchanges have been hacked, resulting in user fund losses. For instance, the 2014 Mt. Gox exchange hack led to the theft of 850,000 Bitcoins, which have yet to be recovered. These events not only affect investor confidence but also directly impact Bitcoin's price.

While some believe that Bitcoin will experience a wave of growth before Trump takes office, in reality, this prediction lacks sufficient data support. According to Bloomberg's report, in recent years, the price of Bitcoin has often been limited by short-term market sentiment, lacking sustainable growth momentum. In addition, with the rise of emerging cryptos, Bitcoin's market share is gradually being diluted, challenging its future growth potential.

Overall, the pullback of Bitcoin to 0.1 million US dollars does not necessarily mean it is a stable investment opportunity. Factors such as market volatility, lack of fundamental support, policy risks, security vulnerabilities, and environmental impacts make the long-term prospects of Bitcoin full of uncertainty. Before entering the market, investors should carefully assess these risks, avoid blindly following the trend, and make wise investment decisions.