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Bitcoin Rebounds to $70,000 After Iran Strikes as Short Squeeze and Fresh Flows Lift Crypto

A short-covering surge in derivatives trading powered the rebound.

Overview

  • Bitcoin sank to roughly $63,000 over the weekend during U.S.-Israeli strikes on Iran, then snapped back to about $69,000–$70,000 on Monday with brief prints above $70,000 on major venues.
  • President Donald Trump said U.S. forces are conducting large-scale operations in Iran as reports confirmed the death of Ayatollah Ali Khamenei; gold and oil rose while U.S. equities finished largely steady.
  • Analysts and market data point to a positioning squeeze rather than fresh spot buying, with CoinGlass tracking large liquidation clusters and reporting roughly $432 million in crypto liquidations during the jump.
  • After four months of heavy outflows from U.S.-listed spot crypto ETFs (about $6.39 billion from bitcoin funds and $2.76 billion from ether), fund trackers reported a near-term turn with more than $1 billion of inflows last week.
  • On-chain metrics showed muted panic from short-term holders, and crypto venues such as Hyperliquid saw active 24/7 hedging in oil, gold and silver perpetuals as traders sought real-time exposure to geopolitical risk.