In recent days, Lao Yi's remarks on 'liquidation' have gone viral in the community.

Many people panic when they see the words 'liquidation,' thinking that the industry is about to cool down. Are the big players about to run away? If you think this way, you are likely to miss the next opportunity for a doubling.

As seasoned investors, we need to understand the underlying logic behind the big players. Yi Lihua's core viewpoint can be summarized in one sentence: entering a bear market is the best time for ordinary people to reposition themselves for a comeback.

1. Why is 'liquidation' considered the highest-level layout?

The 'liquidation' mentioned by Yi Lihua does not mean despair for the industry, but rather a reallocation of assets.

  • Clear out 'junk assets': During a bull market, everyone is euphoric and holds onto a bunch of shell projects and worthless tokens. In a bear market, these things will inevitably go to zero. Clearing them out is to free up valuable ammunition (USDT).

  • The psychological aspect of 'going to zero': Many people become paralyzed after being deeply trapped, and this mindset will cause you to miss real opportunities. Liquidating represents a restart of your mindset, allowing you to calmly observe which sectors will be the leaders in the next round.

Case study: Reflecting on the end of 2018 and early 2019, Dede Capital also experienced growing pains. But it was during that period when no one was optimistic that the real core projects (like the later DeFi trio, infrastructure, etc.) began to sprout. Old Yi was not focused on the market size but on the transformation of technology and productivity.

2. The 'three don'ts' and 'three dos' for bear market positioning

Yi Lihua remains strongly optimistic about the next bull market, but a bull market isn’t something that just happens; it’s something you 'guard' for now. Here are a few practical suggestions for Binance comrades:

❌ Three don'ts:

  1. Do not go all in on unknown altcoins: In a bear market, liquidity is life.

  2. Do not frequently trade short-term: In this market, fees can wipe you out.

  3. Do not leave the arena: Many people uninstall the app after losing, and wait for the bull market to return. By then, you will just be there to pick up the pieces.

✅ Three dos:

  1. Invest in core assets regularly: No matter how the industry changes, assets like BTC and BNB, which have strong risk resistance, will always be the ballast of your portfolio.

  2. Focus on projects that are 'wealthy, have talent, and have ecosystems': See which projects are still hiring, updating code, and holding offline events during the bear market.

  3. Accumulate ammunition: The reason why Yi Lihua is optimistic about the future is that he has cash flow that can withstand cycles.

3. Where is the opportunity for the next bull market?

Old Yi has always emphasized that the industry is progressing. The next bull market is unlikely to repeat outdated stories; opportunities may be hidden in these areas:

  • Real World Assets (RWA): The bridge for traditional funding to enter the crypto market.

  • AI + Crypto: The ultimate combination of productivity and production relations.

  • A smoother Layer 2 ecosystem: Solve the issues of usability and affordability.

Conclusion: The remaining ones will be kings

Yi Lihua said: 'Still optimistic about the next round of the industry's bull market.' This is not just a motivational phrase; it’s a professional sensitivity developed after experiencing multiple life-and-death cycles.

Crypto friends, the bear market is not scary; what’s scary is losing your torch before dawn. Today's liquidation is for holding higher quality assets, and today's waiting is for a more brilliant future explosion.

Operational advice:

At this stage, it’s recommended to maintain a cash position of 30%-50% (USDT/FDUSD), and gradually invest the rest in the market. During the remaining time, engage more in Binance Square, observe more and act less; this is the correct posture for navigating cycles.