Bitcoin price avoids major Iran jitters as S&P 500 ‘short squeeze’ on horizon
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- Bitcoin traded near $65,975 with 24-hour volume topping $30.3 billion after hitting five-week highs near $67,000 earlier in the session, down only 1% on the day despite fresh US-Iran escalation.
- Trump warned on Truth Social that any Iranian attack on ships in the Strait of Hormuz would trigger US bombing of "ONE BRIDGE OR POWER PLANT" in Iran, including infrastructure in Tehran.
- Oil prices spiked with WTI reaching $88.60 and Brent hitting $95.50 — both their highest levels since June 11 — even as crypto and equities continued Tuesday's risk-on direction.
- The Kobeissi Letter flagged S&P 500 short interest at ~3.7% of free float (near its highest since 2010) and Russell 3000 short interest at ~6.1% (near all-time high), warning of a short squeeze punishing late bearish bets.
- Daan Crypto Trades told followers that a break above $67,000 would mark "the first daily higher high since the push up in May," resetting Bitcoin's daily market structure bullish.
- Osemka argued BTC vs. US stocks shows a strong weekly bullish divergence with an RSI trend breakout, calling the ratio "the most mis-priced territory in history" and predicting Bitcoin outperforms the S&P 500 going forward.
Why it matters: With S&P 500 short interest near its highest since 2010 and risk assets dismissing Trump's direct threat to bomb Iranian infrastructure, traders like Kobeissi warn a short squeeze could punish late shorts — while Bitcoin's $67,000 level marks the first daily higher high since May that would confirm bullish structure.
