In August 2025, Li Hua Yi, founder of Liquid Capital, shared his thoughts on the risks associated with high leverage in the cryptocurrency bull market.
Li Hua Yi's Warnings About High Leverage
Li Hua Yi urged caution regarding the use of high leverage during bull markets. He recommended focusing on accumulating spot assets and generating off-chain income. According to him, strategies aimed at minimizing risks are especially important in the context of Bitcoin's price volatility.
The Issue of Bitcoin Price Volatility
Li also emphasized that Bitcoin price movements could be non-linear. He pointed to the possibility of fluctuations where the price might swing between $150,000 and $110,000, then rising again to $180,000. He cautioned against over-reliance on market stability and reminded of the need for strategic asset accumulation.
Impact on Future Regulatory Structures
Research indicates that the trend towards emphasizing spot holdings and the rise of decentralized finance may significantly influence future regulatory frameworks and technological changes within the crypto market. These developments highlight the need for well-founded risk management strategies.
Li Hua Yi's advice underscores the importance of risk management and a strategic approach in volatile markets, which may help to avoid significant losses.
