Yi Lihua, founder of Liquid Capital, stated that the strengthening expectations of interest rate hikes over the past two days have led to divergence in the cryptocurrency market regarding direction, and highlighted two possible scenarios and three significant investment opportunities for the upcoming period.
According to Yi Lihua, if the Fed actually raises interest rates, Bitcoin could fall below the $76,000 level in the short term and experience some downward volatility. Lihua believes that in this scenario, the market could then rebound. However, if the Fed does not raise interest rates, the current upward trend could continue.
He argued that unleveraged spot trading was more suitable due to market uncertainty.
According to Lihua, the first area of opportunity is the spot market for major crypto assets like Bitcoin and Ethereum. He claims that these assets have the potential for approximately four times the return.
Lihua stated that the second important area is transaction infrastructure, and since one of the main use cases of blockchain technology is transactions, there is still potential for growth in this area that could reach up to 100 times.
The third area of opportunity, also raised by Binance founder Changpeng Zhao, is the move of stock trading and initial public offerings (IPOs) to the blockchain. Lihua argued that conducting company stock trading and IPO processes on-chain could lead to the emergence of higher-quality and unexpectedly emerging assets, thereby reducing the importance of the token model, which relies solely on project documentation.
*This is not investment advice.
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