Points of Focus

• Bitcoin climbed nearly 5% toward $64,000 after President Donald Trump signaled that a US-Iran agreement remained on track despite renewed Middle East tensions.
• More than $504 million in Bitcoin short positions were liquidated over 24 hours, marking the largest daily hit to bearish traders since late April 2026.
• The rebound followed a 14% weekly decline, though weak US spot demand and persistent ETF outflows continue to challenge the recovery.

Bitcoin (BTC) rebounded sharply over the weekend after US President Donald Trump said Israeli Prime Minister Benjamin Netanyahu would have “no choice” but to accept a US-brokered deal with Iran, helping fuel a rally that erased part of last week’s steep selloff. 

The move pushed Bitcoin close to $64,000 and triggered one of the largest short squeezes of 2026, with bearish traders losing more than $504 million in a single day.

The rally arrived after a difficult week for crypto markets. Bitcoin had fallen nearly 14% from recent highs as investors responded to persistent spot Bitcoin exchange-traded fund (ETF) outflows, Strategy’s first Bitcoin sale since 2022, rising expectations of Federal Reserve rate hikes, and growing geopolitical tensions in the Middle East.

Bitcoin price rally accelerates as short positions unwind

Data from CoinGlass showed total crypto liquidations reached roughly $655 million over 24 hours, affecting more than 104,000 traders. Bitcoin positions accounted for about $315 million of those forced closures, while Ether (ETH) positions represented another $201 million.

A liquidation occurs when an exchange automatically closes a leveraged position after losses exceed margin requirements. When large numbers of short sellers are forced to buy back Bitcoin to close positions, the process can accelerate upward price moves.

Many traders increased bearish exposure after Bitcoin briefly traded below $60,000 last week. Once prices reversed higher, those positions became vulnerable, creating a chain reaction that pushed Bitcoin toward the $64,000 level.

JUST IN: Bitcoin surges 5% to $64,000 after President Trump says Israeli PM Netanyahu has "no choice" but to accept an Iran deal. pic.twitter.com/2cOBOX5Qq0

— Watcher.Guru (@WatcherGuru) June 7, 2026

Trump’s Iran comments shift market sentiment

The immediate catalyst came from Trump’s comments on ongoing US-Iran negotiations.

Speaking after renewed hostilities between Israel and Iran-backed forces, Trump said he believed a deal with Iran remained on track and stated that Netanyahu would ultimately have to accept Washington’s approach. According to comments highlighted by The Kobeissi Letter, Trump also said Iran’s latest missile strikes wouldn’t derail negotiations.

BREAKING: President Trump says Israeli Prime Minister Netanyahu will have "no choice" but to accept a US deal with Iran, because he "calls the shots," per FT.

Details include:

1. "I call the shots. I call all the shots. He [Netanyahu] doesn’t call the shots," Trump said

2.…

— The Kobeissi Letter (@KobeissiLetter) June 7, 2026

Markets appeared to interpret those remarks as a signal that a broader regional escalation may still be avoided. Bitcoin initially fell as reports of fresh attacks emerged, then reversed sharply after Trump’s comments gained attention across financial markets.

Oil prices continued rising following the developments, suggesting investors remain cautious about the geopolitical outlook even as crypto markets recovered.

Oversold conditions added fuel to Bitcoin’s rebound

The geopolitical headline arrived as traders were already unwinding leveraged positions following one of Bitcoin’s sharpest weekly declines of 2026.

Presto Research associate researcher Min Jung described Bitcoin’s latest rebound as an oversold relief rally after last week’s sharp selloff. Even after recovering over the weekend, Bitcoin remained roughly 15% below its level from a week earlier.

Data from 10x Research showed Bitcoin futures open interest fell by $3.5 billion during the selloff to $21 billion. The decline points to a reduction in speculative positioning before prices rebounded.

10x Weekly Crypto Kickoff – Bitcoin's Real Seller Isn't Who You Think

After last week's sharp selloff, Bitcoin sits in technically oversold territory, and a brief bounce early this week looks likely. But don't mistake a relief rally for a recovery.

The market has spent the past… pic.twitter.com/trvpa8U5G3

— 10x Research (@10xResearch) June 8, 2026

That backdrop created conditions where any positive catalyst could trigger an outsized move, particularly after traders had become heavily positioned for further downside.

Weak spot demand still challenges the recovery

While the rally relieved pressure on the market, several indicators suggest traders remain cautious.

CoinGlass data showed the Coinbase Bitcoin Premium Index remained negative for a 21st consecutive day as of June 8. The metric tracks the difference between Bitcoin prices on Coinbase and global exchanges and is widely used as a gauge of US spot demand.

At the same time, spot Bitcoin ETFs recently recorded a 13-session outflow streak that removed more than $4 billion from the sector. Those funds were a major source of demand during Bitcoin’s climb toward its May peak near $82,000.

Macro conditions also remain challenging. Reuters reported that markets are pricing a greater than 70% probability of a Federal Reserve rate hike in December after US nonfarm payrolls increased by 172,000 in May, exceeding expectations.

Bitcoin was trading around $63,000 at the time of writing, holding well above last week’s lows. Coinbase Premium remained negative for a 21st consecutive day, while spot Bitcoin ETFs were coming off a 13-session outflow streak exceeding $4 billion.