Bitcoin steadies near $66,000 as S&P short interest nears 3.7%

Bitcoin traded near five-week highs at about $66,000 on Wednesday as markets absorbed renewed tensions between the United States and Iran. Analysis from the Kobeissi Letter showed short interest in the S&P 500 at about 3.7% of free float, a level not seen in available data since 2010.

Market data showed BTC/USD down roughly 1% on the day after earlier trading close to $67,000, with 24-hour volume topping $30 billion. Oil prices rose: West Texas Intermediate traded near $88.60 and Brent near $95.50, both their strongest levels since June 11. The moves came after a recent exchange of strikes between the United States and Iran and a post by the U.S. president on Truth Social threatening to target Iranian bridges and power plants if ships in the Strait of Hormuz are attacked. The post read: “the United States will bomb and destroy ONE BRIDGE OR POWER PLANT.”

The Kobeissi Letter reported that short interest in the Russell 3000 reached about 6.1% of free float, approaching all-time highs. The analysis noted both measures have risen steadily since the start of 2025. The report highlighted that elevated short positions can lead to rapid buying if traders covering losing shorts are forced to repurchase shares.

Traders in the crypto market identified $67,000 as a key technical threshold. Daan Crypto Trades wrote that a move above $67,000 would create a daily bullish market structure and mark the first daily higher high since May. Another market participant using the handle Osemka posted that Bitcoin shows a weekly bullish divergence versus the S&P 500 and is near a trend breakout on the relative strength index.

On-chain flows showed sizeable transfers of Bitcoin on and off major exchanges in recent days. Some trading desks flagged that volatility could increase if macro risk sentiment shifts or if equity short covering accelerates.

Market participants continue to watch price action around $67,000, short-interest readings in major U.S. indexes and developments in the Middle East that could affect oil and risk-asset sentiment. Several analysts expect elevated volatility through the remainder of the year, with some forecasts placing the next cyclical low later this year or in early 2027.