Bitcoin holds near $66,000 as Iran tensions fail to shake risk markets

Bitcoin stayed close to recent highs on Wednesday even as U.S.-Iran tensions intensified, a sign that crypto traders were not rushing out of riskier assets. For everyday investors, the key read is that markets treated the geopolitical headlines as serious but not enough, so far, to break the current momentum in Bitcoin and U.S. stocks.

TradingView data cited by Cointelegraph showed BTC/USD down about 1% on the day after earlier trading near $67,000, its strongest level in roughly five weeks. CoinMarketCap data later put Bitcoin around $65,975, with 24-hour trading volume above $30.3 billion.

Markets absorb Trump threat against Iran infrastructure

The move came after U.S. President Donald Trump warned Iran in a Truth Social post that the U.S. would strike bridges or power plants if Iran fired on ships in the Strait of Hormuz. Trump wrote that any such attack by “Missile, Rocket, Drone, or any other device or weapon” would lead the United States to “bomb and destroy ONE BRIDGE OR POWER PLANT,” including sites in or near Tehran.

Crypto and U.S. equities had also held firm Tuesday despite direct strikes involving Iran and the U.S., according to Cointelegraph. Oil was the market showing the clearest reaction Wednesday. TradingView data cited by Cointelegraph showed WTI crude reaching $88.60 and Brent crude hitting $95.50, both their highest levels since June 11.

Oil often reacts sharply to Middle East conflict because traders worry about supply disruptions. The Strait of Hormuz is a critical shipping route, and any threat to vessels there can feed expectations of tighter energy supply.

Short bets build in U.S. stocks

Equity traders are also watching a crowded bearish position. The Kobeissi Letter, citing Bloomberg data, said short interest in the S&P 500 had risen to about 3.7% of free float, close to the highest level in records going back to 2010. Free float means the shares available for public trading, excluding closely held stock.

The Kobeissi Letter also said short interest in the Russell 3000 was around 6.1%, close to a record high, and that both figures had climbed steadily since the start of 2025. Short interest measures bets that prices will fall. If prices rise instead, short sellers may have to buy shares to close their positions, adding more buying pressure in what is known as a short squeeze.

Kobeissi said that setup could hurt late short sellers if the market continues higher.

Bitcoin traders focus on $67,000

For Bitcoin, traders were focused on whether BTC could clear the $67,000 area. Trader Daan Crypto Trades said on X that a move above that level would create a bullish daily market structure break by setting a higher high. In plain English, that means Bitcoin would trade above its last major peak on the daily chart, a pattern some technical traders read as improving momentum.

Daan said it would be the first daily higher high since Bitcoin’s May advance.

Another trader, Osemka, said on X that Bitcoin versus U.S. stocks was showing a weekly bullish divergence and was close to an RSI trend breakout. RSI, or relative strength index, is a momentum indicator used to compare recent gains and losses. Osemka argued that Bitcoin could outperform U.S. stocks, though that remains a market view rather than a confirmed outcome.

Cointelegraph also reported that broader market commentary still leans toward Bitcoin’s next bear-market low arriving later this year or in early 2027. That view is a consensus cited by the outlet, not a certainty.

This story draws on original reporting from Cointelegraph.