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Yi Lihua comments on the massive liquidity injected by the Federal Reserve: The Fed's easing measures will gradually increase, and once the market rises, it will inevitably squeeze out short positions

Summary: In response to the Federal Reserve injecting $160 billion in liquidity this morning, Yi Lihua, founder of Liquid Capital (formerly LD Capital), commented that the Fed will gradually increase its easing measures, similar to the situation after the 3/12 epidemic when a bull market emerged. With institutions holding Bitcoin and ETH, the chip structure has ...

In response to the Federal Reserve injecting $160 billion in liquidity this morning, Yi Lihua, founder of Liquid Capital (formerly LD Capital), commented that the Fed will gradually increase its easing measures, similar to the situation after the 3/12 epidemic when a bull market emerged. With institutions holding Bitcoin and ETH, the chip structure has changed, and once the market rises, it will face short squeezes. Companies have sufficient funds to leverage and buy on dips. Early short positions closed with small losses, but later closures resulted in significant losses, leading to the dissolution of the short alliance.

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