Bitcoin (BTC) traded near recent highs on Wednesday as cryptocurrency markets and other risk assets showed limited reaction to renewed US-Iran war tensions.

BTC/USD was down 1% on the day, according to TradingView data, after earlier reaching five-week highs near $67,000. The move came as US equities also continued the direction seen on Tuesday, when markets largely looked past escalating conflict in the Middle East, including direct strikes by both Iran and the United States.

Bitcoin and stocks absorb Trump threat against Iranian infrastructure

US President Donald Trump threatened attacks on Iranian bridges and energy infrastructure in a Truth Social post, a development that had only a mild effect on broader market performance.

“From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran,” Trump wrote.

Oil was the main asset class to show notable volatility on the day. WTI crude and Brent crude rose to $88.60 and $95.50, respectively, marking their highest levels since June 11. The Strait of Hormuz, which the threat explicitly references, routinely handles roughly one-fifth of global daily oil consumption, making it one of the world's most sensitive energy chokepoints.

In equities, continued upward momentum led trading resource The Kobeissi Letter to warn that traders positioned for a market reversal could face further losses.

“Short interest in the S&P 500 is up to ~3.7% of its free float, near the highest in data going back to 2010. Short interest in the Russell 3000 is up to ~6.1%, also near an all-time high,” The Kobeissi Letter reported on Tuesday, citing Bloomberg data.

“Both metrics have steadily increased since the start of 2025.”

The Kobeissi Letter said the setup could lead to a “short squeeze,” potentially pressuring late short positions.

Traders watch $67,000 as key Bitcoin level

For Bitcoin, traders continued to look for a more decisive move, with the $67,000 area remaining a key point of attention. At the time of publication, BTC traded at roughly $65,975, while 24-hour trading volume exceeded $30.3 billion, according to CoinMarketCap data.

“Breaking above that point would make for a daily bullish market structure break putting in a higher high,” trader Daan Crypto Trades told followers on X earlier Wednesday.

“This is the first daily higher high since the push up in May.”

Some traders also pointed to potential Bitcoin strength relative to the S&P 500.

“$BTC vs. US stocks is seeing a strong weekly bullish divergence and is at the brink of an RSI trend breakout,” an X post by Osemka read, referring to the relative strength index, or RSI, a commonly used momentum indicator.

“Divergent lows are 5 months apart, similar to literal 2022 lows. $BTC should outperform the US stock market nicely for the foreseeable future from the most mis-priced territory in history, as the lows should already be in.”

As Cointelegraph previously reported, broad consensus has continued to favor Bitcoin's next bear-market low occurring later this year or in early 2027.