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IranIsrael Strikes Pull Bitcoin Back After Weekend Short Squeeze

Renewed missile exchanges reversed a short-covering rally, leaving crypto markets fragile with oil and Treasury yields rising.

Overview

  • Bitcoin rallied above $64,000 late Sunday as a short-covering bounce erased part of last week’s losses, then pulled back to about $62,900 on Monday after Iran and Israel exchanged strikes.
  • Data providers reported heavy forced liquidations of roughly $655–$660 million in 24 hours, with short sellers suffering about $504 million in losses during the weekend bounce.
  • The IranIsrael exchanges sent oil prices up more than 3% and knocked Asian equity indexes sharply lower, tightening liquidity and pressuring risk assets including cryptocurrencies.
  • Some analysts point to on-chain signs—such as supply held at a loss and deviations from the 200-week moving average—that selling pressure may be easing, but they caution that geopolitical and macro headwinds keep the outlook fragile.
  • Traders and investors will be watching U.S. inflation data, flows into and out of spot bitcoin ETFs, and Treasury yields for the next moves in crypto prices and market liquidity.