Li Hua Yi Advises Against High Leverage in Bull Market

Li Hua Yi, founder of Liquid Capital, advised against high leverage during bull markets in a post on the X platform on August 14, 2025.

His insights highlight managing risk through spot holdings and off-chain income, critical amidst volatile Bitcoin price movements.

Li Hua Yi Warns High Leverage Increases Risk in Bull Phases

Li Hua Yi, founder of Liquid Capital, shared insights through the X platform on August 14. He emphasized the risks associated with high leverage during a bull market. Instead, he recommended focusing on spot holdings and off-chain income, reinforcing a strategy against potential market swings. “Those who use high leverage in between will become fuel, so it’s better to focus on setting up off-chain income” – Li Hua Yi.

This advice underscores the non-linear nature of market rises, particularly in Bitcoin prices, which could see moves from Bitcoin price fluctuations of $150,000 to $110,000 and then beyond $180,000. Such a path, Li argues, should be viewed as normal, stressing the need for strategic asset accumulation.

The market has yet to see direct responses from key figures in the industry. However, this approach aligns with broader community advocacy for risk-managed strategies, focusing on spot holdings and avoiding margin trading.

Bitcoin’s Price Volatility and Historical Price Movements

Did you know? Similar bullish retracement scenarios have occurred in the past, where patience during market pullbacks has historically proven profitable over the long term.

As per CoinMarketCap, Bitcoin currently stands at $118,961.10 with a market dominance of 58.39%. Its 24-hour trading volume experienced a [33.30% increase](https://twitter.com/Jackyi_ld/status/1954758537630130658), amounting to $106.24 billion. Despite a minor dip of 1.60% over the last 24 hours, BTC has gained 14.84% over 90 days.

According to Coincu’s research, the trend of accentuating spot holdings and the evolution toward decentralized financial structures may play a significant role. These changes could influence future regulatory frameworks and shape technological advancements within the crypto market.