Bitcoin Regains $80,000 Amid Iran Tensions and Short Squeeze

The Bitcoin price has regained the $80,000 mark after a brief dip below $78,000. This recovery was largely driven by forced buybacks and easing tensions between the U.S. and Iran.

Following a weekend of U.S. airstrikes on Iranian targets, which had pushed Brent crude above $96 per barrel and sent equities lower, hostilities paused on Thursday. This pause lifted pressure on the Federal Reserve to cut interest rates, allowing Bitcoin's price to rise.

The price surge was also fueled by short liquidations, with over $164 million of bearish bets being closed out in just four hours. Meanwhile, the odds of a Fed rate hike this month fell from 67% to 50.5% on Thursday evening.

However, analysts caution that the rally could fade quickly, as it did in late August. Back then, Bitcoin's price rose by 25% before collapsing within three days once the short squeeze ended.