Following the sharp decline within the cryptocurrency market in latest days, Liquid Capital (previously LD Capital) founder Yi Lihua made a notable evaluation on his social media account.
Yi Lihua stated the decline was “brought on by a number of components” and introduced that he had utterly liquidated all positions for the primary time. Lihua, who beforehand solely borrowed utilizing leverage, defined that there have been 4 foremost causes behind his choice.
- Bitcoin reaches sturdy resistance stage: Lihua stated that Bitcoin has reached a brand new peak, however with no sturdy optimistic breakout, a rebound is inevitable.
- Synthetic Rise within the U.S. Inventory Market: He argued that the U.S. inventory market has hit new highs and that synthetic intelligence and semiconductor firms specifically are taking part in a “Ponzi sport” and that this rally just isn’t sustainable.
- Political adjustments in Japan and rate of interest dangers: He stated that with a change within the prime minister on the agenda in Japan, the danger of rates of interest rising has elevated, and rates of interest proceed to rise.
- Altcoin crash and memecoin influence: Lihua stated the latest memecoin craze has sucked liquidity from the market, successfully making most altcoins “extinct.”
*This isn’t funding recommendation.
