Chapter 775 - 320: It’s You, Boeing!

Chapter 775: Chapter 320: It’s You, Boeing!

The essence of this matter is still because Bitcoin is pegged to the US Dollar.

Indeed, the existence of Bitcoin challenges the role of the US Dollar in the global financial system, even capable of shaking its core.

However, due to the nature of the US Dollar, it is currently necessary to use US Dollar transactions. No matter what currency it is, it ultimately needs to be converted to US Dollar valuation.

To some extent, this has also increased the core strength of the US Dollar in the short term.

This is the reason the United States has not officially banned Bitcoin. They want to participate themselves.

However... Bitcoin in the entire financial system is ultimately a very small link, not considered the focus of financial games. They haven’t gone all-in, nor will they pay a significant price to kill this thing.

Li Yang doesn’t want to make a move right now; losing tens of millions of US Dollars is just a loss. Solving this matter quickly to maintain the credibility of the Huobi Platform is the most important thing.

The other party went to great lengths just to bite open a hole on the Huobi platform. Such a small hole can’t let much flow out.

Perhaps they wanted to collapse the platform at once but underestimated the platform’s resilience and overestimated their own influence.

Unless they have the ability to make everyone withdraw at once.

Things like this are almost impossible to achieve.

However, such incidents cannot happen frequently. If they occur too often, it will lead to a gradual loss of users.

This time, perhaps a significant number of users will be lost.

Li Yang is unclear about the capital structure in the Bitcoin spot market.

However, he is very clear about the capital structure within Bitcoin contracts.

It comprises currencies from all over the world, with the US Dollar accounting for 50%, RMB accounting for 20%, Euros and Japanese Yen accounting for 25%, and the rest taking up a fifth.

The primary reason for the high US Dollar proportion is still due to many small countries’ currencies not being supported by the platform. Ultimately, they have to resort to the US Dollar, using it as a platform to participate.

He knows there are many domestic users, possibly with hundreds of billions of funds involved, which has even facilitated a lot of domestic capital.

But he would absolutely not have any scruples because of this, even if that domestic money’s origins are dubious.

He cannot refuse RMB; doing so would be cultivating users for competitors, as those funds would simply flow to other platforms.

Jiang Banxia also knows that her operations brought about this negative effect, losing money before earning it, and possibly losing some users.

Those users cannot be easily measured by money.

On her laptop, she has all of Li Yang’s account situations, but she hasn’t paid attention to other matters, as Chen Peipei has been handling them.

She had nothing to do today, so she took a look.

She found consistent short positions, with account funds reaching a staggering 80 billion US Dollars.

However, out of this 80 billion US Dollars, nearly 60 billion is restricted.

Because selling short positions would get funds from the market, those funds will remain in one’s account, but before the short contract is repaid, the money cannot be moved.

If all the short contract values held by Li Yang fall to zero, it would mean all the money in the account belongs to Li Yang.

Judging from Li Yang’s position, he has practically shorted the entire world.

He has dabbled in almost all shortable crude oil products, with total capital reaching 50 billion US Dollars.

The average leverage is at five times.

However... Jiang Banxia quickly noticed that besides shorting crude oil, Li Yang also heavily shorted Boeing.

Boeing indeed hasn’t been doing well recently, with its market value falling from 400 billion US Dollars to the current 310 billion US Dollars.

In theory, even if there is no complete bearishness, it should be almost over. There won’t be 20 points of fluctuation up and down, yet Li Yang shorted 100 billion US Dollars worth, divided into three accounts.

It’s equivalent to borrowing 3% of Boeing’s shares from a broker and selling them on the market.

At any time, she felt that what Li Yang did was not without aim.

If Li Yang says bearish, then it’s bearish.

However, when she checked the relevant data, she found there were not many short positions on Boeing.

Especially the shares held by major brokers, added up to 25%.

This is a terrifying number, Li Yang has already taken up 3%, but those brokers still have so much, indicating that besides the ones Li Yang holds, there are almost no short contracts left in the market?

Then why did Li Yang short over 100 billion directly, what is the purpose?

His funds have already been thrown in, and there’s no room for maneuver next.

She checked Boeing’s k-line over the past few days; the trading volume was quite impressive.

In recent years, US Stocks have created an illusion for investors worldwide that every decline is an opportunity.

Because indeed, every time it falls, it gets pulled back up again.

Therefore, even if those stocks have fallen sharply, countless investors would still flock to it.

Basically, short selling is a privilege unique to Wall Street, with others generally not daring to touch it, at most buying some stock index futures, and shorting individual stocks, and most people don’t have the courage to do so.

Jiang Banxia felt there was plenty of support underneath; Boeing seemed to have fallen into a golden pit.

This global leader in large aircraft has no shortage of orders every year. In the next five years globally, there’s a shortage of over 8,000 aviation planes. Boeing has countless orders to fill.

From a fundamental perspective, Boeing is invincible.

This time, Xinguan indeed affected the airline business, but similarly, the current decrease in crude oil prices is also a favorable condition regarding transport costs. Dropping twenty to thirty points at this time, from anyone’s perspective, would be considered having fallen sufficiently.