Cryptocurrency investor Yi Lihua answered questions about his long-term strategy focused on Ethereum ($ETH).
Yi, the founder of Liquid Capital (formerly LD Capital), said he remains optimistic about $ETH, evaluating current market conditions through the lens of interest rate cycles.
Yi Lihua answered the question, “Why did $ETH lag behind while Bitcoin ($BTC) surpassed its previous peak?” by stating that the current period coincides with an interest rate hike cycle. While $BTC has reached new highs, Yi noted that the overall performance of the crypto market has remained weak, arguing that the past four years have been one of the most difficult periods for crypto. According to Yi, a new bull market will begin with the upcoming interest rate reduction cycle, and as in previous bull cycles, $ETH’s return will outperform $BTC.
Yi Lihua stated that the classic four-year market cycle model is no longer valid. Therefore, he considers the current period the most opportune time to enter the crypto market, particularly highlighting $ETH. He noted that stablecoins backed by US Treasury bonds and on-chain financial services offer significant opportunities, and that the Ethereum ecosystem will be the biggest winner in these areas.
Responding to the question, “Why are people buying instead of waiting for a lower price?”, Yi stated that no one can predict the exact bottom of the market. Citing previous $BTC bull markets as an example, Yi said that differences in buying timing are not very large in the long run. According to the analyst, current levels are already close to the bottom, and even if individual investors don’t buy, the market fills the void. He added that the influence of institutional investors on the market trend is not as significant as commonly believed.
Responding to criticism regarding his frequent pro-$ETH posts on X (formerly Twitter) and his sell-off at the $4,500 level, Yi reiterated his strong long-term bullish outlook for $ETH. He stated that the $4,500 sell-off was a precautionary measure against short-term risks, that the transaction was completely transparent, and that their goal was not to shift losses onto others but to accumulate more $ETH.
*This is not investment advice.
