Oil Prices Soar, Bitcoin Struggles: Impact and Potential Consequences of Financial Volatility

West Texas Intermediate oil has reached a record high of $115 per barrel, while gasoline prices in the United States have risen by nearly 40% since late February. In this turbulent context, Bitcoin is once again attempting to break through stubborn resistance, a challenge it has now failed to overcome six times.

On Monday, the value of Bitcoin temporarily touched $69,550. This resulted in a modest gain of 3,30%, but it nevertheless sent shockwaves through the derivatives market.

Within a 24-hour period, more than $276 million in leveraged positions were liquidated, with approximately 80.200 traders on crypto derivatives platforms falling victim to this movement. However, the consequences of these liquidations were not evenly distributed.

The bears (traders betting on price declines) took the heaviest hit. According to data from CoinGlass, short positions accounted for no less than $188 million of the $210 million liquidated in a period of just 12 hours around the price peak. By comparison, long liquidations totaled $24 million. Traders who had expected the price to fall further were completely surprised when Bitcoin moved towards the $70,000 level again, a barrier it has been unable to maintain since early February.

Bitcoin remains far below its all-time high. The cryptocurrency reached an all-time high of no less than $126,000 on October 6, 2025. At current prices, Bitcoin is trading approximately 45% below that record. This provides additional context for Monday's rally, offering concise insight into market dynamics.

A Possible Squeeze Approaching

The positioning data tells an inconsistent story. Based on data from CoinGlass, there are over $6 billion in short positions around $72,500. Should Bitcoin reach that level, these positions could be forced to be closed quickly.

On the downside, there are approximately $2 billion in long positions near $65,000 — a smaller but real risk if the upward momentum fades. The gap between short and long exposure means many traders are watching anxiously for a potential squeeze. It is worth noting that since losing the $70,000 mark in early February, Bitcoin has already attempted to break through this resistance six times. Every attempt has failed so far. The recent move is another test of that resistance, and the context in which this is happening is anything but calm.

Pressure from the energy market

A stalemate in the Strait of Hormuz has tightened its grip on global energy markets since late February. Iran is currently refusing the terms of a ceasefire, stating that compensation for war damage must be settled before the strait reopens.

As a result, oil prices have risen and the cost of gasoline in the United States has exploded; a nature of rising inflation concerns inevitably follows. The US President has recently spoken out in favor of reopening the streets, citing concerns about global trade. Reports suggest that he also suggested a deal with Iran might be within reach, but warned of serious consequences should talks fail, including potential US control over Iranian oil resources.

Frequently Asked Questions

What are the consequences of the liquidations for the crypto market?
The fact that short positions have taken the heaviest hits may indicate increasing volatility in the market. Traders who went against the grain often struggle to recoup their losses, which can lead to greater price fluctuations and opportunities for more experienced investors.

What are the odds for a Bitcoin squeeze?
With over $6 billion in short positions close to the $72,500 level, a rise to that point could result in a liquidation spiral that could further drive the price of Bitcoin. This scenario is interesting for traders who are bullish on Bitcoin and point to the possibility of a powerful rally.

How do geopolitical factors influence the crypto market?
Geopolitical tensions, such as the situation surrounding the Strait of Hormuz, can have a significant impact on global inflation and, consequently, the risk acceptance of investors in the crypto spaces. Rising energy prices exacerbate pre-existing concerns about economic stability and may encourage investors to consider alternative assets such as Bitcoin as a way to protect themselves against inflation.