Bitcoin price avoids major Iran jitters as S&P 500 ‘short squeeze’ on horizon

Bitcoin (BTC) held higher connected Wednesday arsenic crypto and hazard assets continued to brushwood disconnected US-Iran warfare tensions.

Key points:

• Bitcoin limits its comedown from five-week highs contempt caller escalation successful the US-Iran war.
• US stocks besides disregard the imaginable risks, arsenic investigation warns that shorts could wage arsenic a result.
• A Bitcoin trader sees BTC/USD outperforming the S&P 500 going forward.

Bitcoin, stocks digest Trump pledge to “destroy” Iran powerfulness plants

Data from TradingView showed BTC/USD down 1% connected the day, having earlier deed five-week highs adjacent $67,000.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Crypto and US stocks continued Tuesday’s direction, which saw them ignore escalation successful the Middle East, including nonstop strikes by some Iran and the US.

US president Donald Trump threatened attacks connected Iranian bridges and vigor infrastructure, which had lone a mild interaction connected marketplace performance.

“From this constituent forward, immoderate clip the Islamic Republic of Iran shoots astatine a vessel successful the Strait of Hormuz, whether it beryllium by Missile, Rocket, Drone, oregon immoderate different instrumentality oregon weapon, the United States volition weaponry and destruct ONE BRIDGE OR POWER PLANT, including those located adjacent to, oregon in, the Capital City of Tehran,” helium wrote successful a station connected Truth Social.

Only lipid prices saw volatility connected the day, with WTI and Brent crude reaching $88.60 and $95.50, respectively, some astatine their highest since June 11.

CFDs connected WTI crude lipid vs. CFDs connected Brent crude lipid one-day chart.
Source: Cointelegraph/TradingView

Stocks’ bullish momentum prompted trading assets The Kobeissi Letter to suggest that those betting connected a marketplace reversal could spot much pain.

“Short involvement successful the S&P 500 is up to ~3.7% of its escaped float, adjacent the highest successful information going backmost to 2010. Short involvement successful the Russell 3000 is up to ~6.1%, besides adjacent an all-time high,” it reported connected Tuesday alongside information from Bloomberg.

“Both metrics person steadily accrued since the commencement of 2025.”

S&P 500 scale short-interest data. Source: The Kobeissi Letter connected X.com

Kobeissi suggested that a “short squeeze” could result, punishing precocious abbreviated positions.

Trader sees BTC terms outperforming stocks

As for Bitcoin, traders continued to hold for a much decisive move, with $67,000 a peculiar focus. At clip of publication, it was astatine astir $65,975, with 24-hour trading measurement topping $30.3 billion, according to CoinMarketCap data.

Related: Bitcoin investigation eyes ‘serious volume’ aft Binance sees 9K BTC regular outflow

“Breaking supra that constituent would marque for a regular bullish marketplace operation interruption putting successful a higher high,” trader Daan Crypto Trades told X followers earlier Wednesday. 

“This is the archetypal regular higher precocious since the propulsion up successful May.”

BTC/USDT four-hour chart. Source: Daan Crypto Trades connected X.com

To beryllium sure, immoderate traderseyed pronounced BTC terms spot against the S&P 500.

“$BTC vs. US stocks is seeing a beardown play bullish divergence and is astatine the brink of an RSI inclination breakout,” an X station by Osemka read, referring to the comparative spot scale (RSI) starring indicator. 

“Divergent lows are 5 months apart, akin to literal 2022 lows. $BTC should outperform the US banal marketplace nicely for the foreseeable aboriginal from the astir mis-priced territory successful history, arsenic the lows should already beryllium in.”

BTC/USD vs. S&P 500 one-week chart. Source: Osemka connected X.com

As Cointelegraph reported, wide statement continues to favour Bitcoin’s adjacent bear-market debased coming aboriginal this twelvemonth oregon successful aboriginal 2027.