Following the sharp decline in the cryptocurrency market in recent days, Liquid Capital (formerly LD Capital) founder Yi Lihua made a notable assessment on his social media account.
Yi Lihua said the decline was “caused by multiple factors” and announced that he had completely liquidated all positions for the first time. Lihua, who previously only borrowed using leverage, explained that there were four main reasons behind his decision.
- Bitcoin reaches strong resistance level: Lihua said that Bitcoin has reached a new peak, but without a strong positive breakout, a rebound is inevitable.
- Artificial Rise in the U.S. Stock Market: He argued that the U.S. stock market has hit new highs and that artificial intelligence and semiconductor companies in particular are playing a “Ponzi game” and that this rally is not sustainable.
- Political changes in Japan and interest rate risks: He said that with a change in the prime minister on the agenda in Japan, the risk of interest rates rising has increased, and interest rates continue to rise.
- Altcoin crash and memecoin impact: Lihua said the recent memecoin craze has sucked liquidity from the market, effectively making most altcoins “extinct.”
*This is not investment advice.
