Bitcoin ($BTC) held higher on Wednesday as crypto and risk assets continued to brush off US-Iran war tensions.
Key points:
- Bitcoin limits its comedown from five-week highs despite fresh escalation in the US-Iran war.
- US stocks also ignore the potential risks, as analysis warns that shorts could pay as a result.
- A Bitcoin trader sees $BTC/USD outperforming the S&P 500 going forward.
Bitcoin, stocks digest Trump pledge to “destroy” Iran power plants
Data from TradingView showed $BTC/USD down 1% on the day, having earlier hit five-week highs near $67,000.
$BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Crypto and US stocks continued Tuesday’s direction, which saw them ignore escalation in the Middle East, including direct strikes by both Iran and the US.
US president Donald Trump threatened attacks on Iranian bridges and energy infrastructure, which had only a mild impact on market performance.
“From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran,” he wrote in a post on Truth Social.
Only oil prices saw volatility on the day, with WTI and Brent crude reaching $88.60 and $95.50, respectively, both at their highest since June 11.
CFDs on WTI crude oil vs. CFDs on Brent crude oil one-day chart.
Source: Cointelegraph/TradingView
Stocks’ bullish momentum prompted trading resource The Kobeissi Letter to suggest that those betting on a market reversal could see more pain.
“Short interest in the S&P 500 is up to ~3.7% of its free float, near the highest in data going back to 2010. Short interest in the Russell 3000 is up to ~6.1%, also near an all-time high,” it reported on Tuesday alongside data from Bloomberg.
“Both metrics have steadily increased since the start of 2025.”
S&P 500 index short-interest data. Source: The Kobeissi Letter on X.com
Kobeissi suggested that a “short squeeze” could result, punishing late short positions.
Trader sees $BTC price outperforming stocks
As for Bitcoin, traders continued to wait for a more decisive move, with $67,000 a particular focus. At time of publication, it was at roughly $65,975, with 24-hour trading volume topping $30.3 billion, according to CoinMarketCap data.
“Breaking above that point would make for a daily bullish market structure break putting in a higher high,” trader Daan Crypto Trades told X followers earlier Wednesday.
“This is the first daily higher high since the push up in May.”
$BTC/USDT four-hour chart. Source: Daan Crypto Trades on X.com
To be sure, some traderseyed pronounced $BTC price strength against the S&P 500.
“$BTC vs. US stocks is seeing a strong weekly bullish divergence and is at the brink of an RSI trend breakout,” an X post by Osemka read, referring to the relative strength index (RSI) leading indicator.
“Divergent lows are 5 months apart, similar to literal 2022 lows. $BTC should outperform the US stock market nicely for the foreseeable future from the most mis-priced territory in history, as the lows should already be in.”
$BTC/USD vs. S&P 500 one-week chart. Source: Osemka on X.com
As Cointelegraph reported, broad consensus continues to favor Bitcoin’s next bear-market low coming later this year or in early 2027.
