Bitcoin Resists Iran Jitters as Stocks Eye Potential Short Squeeze

Bitcoin's price remained resilient on Wednesday as investors continued to brush off escalating tensions between the US and Iran.

The cryptocurrency, which had earlier hit a five-week high near $67,000, only dipped by 1% on the day, according to data from TradingView.

This muted response was echoed in the stock market, with US stocks seemingly ignoring the potential risks associated with the conflict.

According to analysis from The Kobeissi Letter, short interest in the S&P 500 has reached ~3.7% of its free float, near an all-time high, which could potentially lead to a 'short squeeze' and punish late short positions.

Some traders, however, remain bullish on Bitcoin's prospects, with one predicting that it will outperform the S&P 500 going forward due to a strong weekly bullish divergence and an RSI trend breakout.