Bitcoin slid back to roughly $63,316 Saturday after briefly touching $64,128 during a weekend short squeeze. The rally fell apart when Israeli forces launched airstrikes across central and western Iran, hitting infrastructure in Isfahan, Tehran, and Tabriz, including a petrochemical facility. Iran responded by firing about 10 ballistic missiles toward northern Israel, most of which the Israeli military said were intercepted or landed in uninhabited areas. The renewed violence yanked capital out of risk-on assets and sent Bitcoin back down.
The weekend squeeze that didn't hold
Bearish speculators had piled on short bets expecting a deeper breakdown, but a sudden upturn over the weekend forced them to unwind positions aggressively. That gave Bitcoin a brief lift — until the headlines from the Middle East landed. The move underscores how fragile crypto rallies are when geopolitics flare up. 10x Research called Bitcoin technically oversold but warned against mistaking a relief rally for a recovery.
Israel-Iran escalation complicates Trump's diplomacy
The airstrikes hit Isfahan, Tehran, and Tabriz. Iran's Parliament Speaker Mohammad Bagher Ghalibaf dismissed any immediate ceasefire, arguing that US assets in the region are legitimate targets because of naval blockades and tacit support for Israel. President Trump, who has been leading diplomatic efforts, distanced himself from the Israeli PM's decisions, stating he calls the shots. The fresh fighting makes any near-term de-escalation look unlikely.
Oil surges, South Korea's market halts
Brent crude jumped 4.47% to $97.15 a barrel; US WTI rose 4.50% to $94.61. Oil prices have climbed nearly 60% since the wider conflict began in late February. Traders are now pricing in the risk of disruptions in the Strait of Hormuz, which handles roughly 20% of global daily LNG and oil transit. The shockwaves hit Asian equities hard — South Korea's KOSPI index plunged more than 8%, triggering a trading halt.
Crypto-specific structural headwinds
Bitcoin is dealing with its own problems. US spot Bitcoin ETFs have seen over $4 billion in outflows, and Strategy (formerly MicroStrategy) sold Bitcoin for the first time since 2022 — an event that adds to supply-side pressure. CryptoQuant analyst Axel Adler noted a severe lack of fundamental demand in the derivatives market. The short covering that fueled the weekend uptick looks like a technical reflex, not a change in sentiment.
