Fed Rate Hikes vs No Hikes: Yi Lihua Weighs in on Bitcoin's Short-Term Prospects

Yi Lihua, founder of Liquid Capital, believes that expectations of interest rate hikes have led to divergence in the cryptocurrency market. According to him, there are two possible scenarios for Bitcoin's short-term performance.

Firstly, if the Fed actually raises interest rates, Bitcoin could fall below $76,000 in the short term and experience some downward volatility. However, Lihua believes that this market correction may lead to a rebound afterwards.

On the other hand, if the Fed does not raise interest rates, the current upward trend of major crypto assets like Bitcoin and Ethereum could continue.

Lihua also highlights three significant investment opportunities for the upcoming period. Firstly, the spot market for major cryptocurrencies has the potential for approximately four times the return. Secondly, transaction infrastructure still holds potential for growth, which could reach up to 100 times. Lastly, the move of stock trading and initial public offerings (IPOs) to the blockchain is an area that Lihua believes has great potential.