Bitcoin could stage a "short squeeze to $80,000," analysts warn of a larger liquidation storm approaching
BlockBeats News, May 25—As the market bets on an easing of US-Iran tensions, Bitcoin has rebounded from near $75,000. Traders now expect Bitcoin to make a move towards $80,000, potentially triggering a large number of short liquidations.
Several traders stated that Bitcoin's previous drop below $75,000 seemed more like a “liquidity sweep,” and the market has now returned to a short-term bullish rhythm. Analysts point out that the $80,000 to $80,500 region is crowded with high-leverage short positions. If the price continues to climb, it could spark a new round of short squeezes.
Meanwhile, expectations are rising for a peace agreement between the US and Iran. US stock futures have already hit record highs, while oil prices have retreated. Analysts believe that if geopolitical risks subside, it will be beneficial for an overall recovery in risk assets, including the crypto market.
However, on-chain and liquidity data are still signaling warnings. On-chain analytics platform CryptoQuant pointed out that in the past 10 days, one exchange saw a significant net inflow of Bitcoin, with reserves increasing by about 16,000 BTC in a single month, which is generally viewed as a signal of rising potential sell pressure.
In addition, US spot Bitcoin ETFs have recently continued to see capital outflows, and the premium index of a certain exchange has turned negative, indicating weakening demand from US institutions. At the same time, leveraged long positions in the market continue to increase, and the funding rate remains positive.
Analysts warn that against the backdrop of “ETF withdrawals, weak spot demand, and crowded leveraged longs,” Bitcoin's current move appears more like a fragile, leverage-driven rebound rather than a healthy bull market, potentially leading to a “large-scale liquidation event” in the future.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
McEwen’s $55M Ontario asset sale fuels gold growth plans
US Stock Market Movement | US clinical-stage biopharmaceutical company Retension Pharmaceuticals (RTSN.US) debuts on the US stock market; shares fall over 10% after opening
As of press time, the stock has dropped more than 10%, trading at $10.77.
U.S. Stocks Move | Trex Bio (TRXB.US) Debuts on the U.S. Stock Market, Drops Over 1.3% After Opening
As of press time, the stock has fallen by over 1.3%, trading at $13.805.
BUZZ - Broker Perspectives: Analysts Express Doubts Over Starbucks and Chipotle Acquisition
Latest Update October 9 – The Financial Times reported on Thursday that Starbucks (SBUX.O) has explored a potential acquisition of Chipotle (CMG.N). This move would bring CEO Brian Niccol back to the Mexican burrito chain he once led. Starbucks declined to comment, saying the company remains "fully focused" on its business turnaround. Chipotle's stock fell about 4% to $31.32 on Friday, after surging 6.2% in the previous trading session. Limited strategic rationale BTIG expressed "high skepticism," stating that the deal does not make sense operationally, would cause significant dilution for Starbucks shareholders, and would disrupt management operations. "Over the years we've heard many stories about multi-brand acquisitions... but few have materialized, and even fewer have succeeded," BTIG noted. William Blair pointed out that Starbucks’ $9.4 billion net debt as of June makes it difficult to finance an acquisition and could push the combined company’s leverage ratio to about six times—considered high for the restaurant industry. D.A. Davidson stated the probability of the deal succeeding is 20% or less, given the significant differences between the brands and the apparent lack of clear synergies. Raymond James noted that due to the low overlap in menus, supply chain benefits are likely limited, while performance among multi-brand restaurant platforms has been mixed. eMarketer’s Suzy Davidkhanian commented that Niccol's familiarity may reduce execution risk, but investors might still see the deal as a "costly distraction" during Starbucks’ transformation. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Automated translation may be inaccurate or fail to include necessary context; Reuters does not guarantee the accuracy of automated translated text and provides it solely for readers’ convenience. Reuters accepts no responsibility for any damage or loss resulting from the use of automated translation functions.)
Crypto prices
More
