Following the sharp declines within the cryptocurrency market in current days, Liquid Capital (previously LD Capital) founder Yi Lihua made outstanding assessments on his private social media account.
Yi Lihua said that this decline was “attributable to a number of components,” and introduced that he had fully liquidated all his positions for the primary time. Lihua, who beforehand solely borrowed with leverage, defined that there have been 4 predominant causes behind his determination:
- Bitcoin reaching sturdy resistance degree: Lihua said that Bitcoin has reached a brand new peak however with out a sturdy optimistic breakout, a pullback is inevitable.
- Synthetic rise in US inventory markets: He argued that US inventory markets had made new highs, that synthetic intelligence and semiconductor firms particularly had been taking part in a “Ponzi sport” and that this rise was not sustainable.
- Political change and rate of interest threat in Japan: He said that with the change of prime minister on the agenda in Japan, the chance of an rate of interest hike has elevated and rates of interest proceed to rise.
- Altcoin crash and memecoin impact: Lihua mentioned that the current memecoin craze has sucked liquidity from the market, successfully “killing” most altcoins.
*This isn’t funding recommendation.
