Following the sharp declines in the cryptocurrency market in recent days, Liquid Capital (formerly LD Capital) founder Yi Lihua made remarkable assessments on his personal social media account.
Yi Lihua stated that this decline was “caused by multiple factors,” and announced that he had completely liquidated all his positions for the first time. Lihua, who previously only borrowed with leverage, explained that there were four main reasons behind his decision:
- •Bitcoin reaching strong resistance level: Lihua stated that Bitcoin has reached a new peak but without a strong positive breakout, a pullback is inevitable.
- •Artificial rise in US stock markets: He argued that US stock markets had made new highs, that artificial intelligence and semiconductor companies in particular were playing a “Ponzi game” and that this rise was not sustainable.
- •Political change and interest rate risk in Japan: He stated that with the change of prime minister on the agenda in Japan, the risk of an interest rate hike has increased and interest rates continue to rise.
- •Altcoin crash and memecoin effect: Lihua said that the recent memecoin craze has sucked liquidity from the market, effectively “killing” most altcoins.
*This is not investment advice.