What is Bitcoin Lockup (Bitcoin Position Limit)?

Bitcoin Lockup, also known as Bitcoin Position Limit, is a long-term investment

What is Bitcoin Lockup (Bitcoin Position Limit)?

Bitcoin Lockup, also known as Bitcoin Position Limit, is a long-term investment strategy that involves selecting the appropriate funds for a certain cryptocurrency within a specific time frame. When the price of Bitcoin rises, holders will store a portion of their assets in a designated wallet to gain profits. However, due to the high volatility of Bitcoin, regular repurchases or redemptions are necessary. The mining reward for Bitcoin halves every four years. The lockup of Bitcoin means that if it is not sold one day and the price drops to zero, the Bitcoin cannot be mined. This means that the cost of mining becomes the investors’ loss. As more people participate in mining, the rate of return will gradually increase.

Bitcoin Position Limit

The Bitcoin Position Limit (LimitOf Holdings) is determined based on the current market situation. In the past few months, the price of BTC has increased from $20,000 to over $40,000, with a growth of over 90%. However, when investors start reducing their holdings of cryptocurrencies, they choose to increase their positions to maintain profitability. This means that if more capital enters the cryptocurrency field, it increases the difficulty of asset allocation in the investment portfolio.

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