May 2025 Market Outlook: Risk Warning Amid Long and Short Positioning
With $1.3 trillion in U.S. Treasury bonds maturing in June coupled with inflation pressures, expectations for Federal Reserve interest rate cuts remain bleak. Currently, there are two possibilities in the market:
Short-term Surge to Induce Long Positions: Bitcoin may reach $109,000, Ethereum may hit $2,900-$3,000, and the Nasdaq may rise to $21,000, capitalizing on favorable outcomes from U.S.-China negotiations to squeeze shorts.
Medium to Long-term Risks: Without incremental capital support, if a U.S. debt crisis triggers liquidity tightening, the probability of a double whammy for both long and short positions could surge (referencing the January precedent of squeezing longs).
Advice: Be wary of abrupt turns under the game of existing funds, prepare to exit before the end of the month, and avoid chasing prices with heavy positions.
Today there is an airdrop; as usual!
