Bitcoin price avoids major Iran jitters as S&P squeeze looms
Bitcoin price avoids major Iran jitters on Wednesday as BTC held near five-week highs and US stocks stayed firm despite fresh US-Iran escalation. Oil spiked, but analysis flagged elevated S&P 500 short interest and a possible short squeeze, while some traders expect Bitcoin to outperform equities ahead.
Key Takeaways
- Bitcoin dipped about 1% after touching five-week highs near $67,000, yet still shrugged off fresh US-Iran war tensions.
- US stocks also held their ground even as President Donald Trump threatened strikes on Iranian bridges and power plants.
- Oil jumped, with WTI and Brent crude hitting their highest levels since June 11.
- The Kobeissi Letter warned S&P 500 short interest near the highest since 2010 could fuel a short squeeze.
- Some traders see Bitcoin outperforming US equities after a weekly bullish divergence versus the S&P 500.
Risk assets largely ignored the latest Middle East escalation on Wednesday, according to Cointelegraph market coverage. For more alerts like this, follow BlasterPost’s Fintech & Crypto Alerts hub.
Why did Bitcoin shrug off Iran escalation?
TradingView data cited by Cointelegraph showed BTC/USD down roughly 1% on the day after earlier printing five-week highs near $67,000. Crypto and US stocks kept Tuesday’s tone, brushing aside direct strikes involving Iran and the United States.
Trump wrote on Truth Social that if Iran fires on ships in the Strait of Hormuz, the United States will bomb and destroy one bridge or power plant, including sites next to or in Tehran. Markets barely blinked. Oil was the clear exception: WTI reached $88.60 and Brent $95.50, both highs since June 11.
At publication, Bitcoin traded near $65,975 with more than $30.3 billion in 24-hour volume, per CoinMarketCap figures reported by Cointelegraph. Traders still watched $67,000 as the level that could confirm a stronger daily structure.
Could an S&P 500 short squeeze punish late bears?
Bullish equity momentum prompted The Kobeissi Letter to warn that shorts may face more pain. It said S&P 500 short interest had risen to about 3.7% of free float, near the highest in data going back to 2010, citing Bloomberg figures.
Short interest in the Russell 3000 sat near 6.1%, also close to an all-time high. Both gauges have climbed steadily since the start of 2025. Kobeissi suggested a short squeeze could punish late short positions if the rally continues.
Will Bitcoin outperform US stocks from here?
Trader Daan Crypto Trades told followers that a break above $67,000 would mark a daily bullish market-structure break and the first daily higher high since May’s advance. Separately, analyst Osemka argued BTC versus US stocks showed a strong weekly bullish divergence and sat near an RSI trend breakout.
Osemka said divergent lows were five months apart, similar to 2022 lows, and that Bitcoin should outperform US stocks from what the trader called the most mis-priced territory in history. Cointelegraph also noted broad consensus still favors Bitcoin’s next bear-market low later this year or in early 2027.
None of this is investment advice. War-risk headlines can reverse quickly, and elevated short interest does not guarantee a squeeze. Still, Wednesday’s tape showed Bitcoin and equities absorbing geopolitical noise while oil priced the stress first.