$150 Million Lost in Short Positions as Bitcoin Nears $66K
June 15, 2026
Approximately $150 million in short positions were wiped out across the crypto market following the U.S.-Iran peace agreement, as bitcoin surged towards the $66,000 level.
The liquidation of these short positions occurred when President Donald Trump announced that the peace deal was “officially complete,” leading to an increase in bitcoin’s price above $65,000. When traders are unable to meet margin requirements, exchanges forcibly close leveraged positions, resulting in short liquidations. This forces bearish traders to repurchase the asset, which can further accelerate the rally that initiated the squeeze.
The positive news of the U.S.-Iran peace deal not only led to the wipeout of short positions but also triggered a risk-on rotation in the market. Crude oil prices dropped by approximately 4% due to the de-escalation, easing inflation concerns and increasing the demand for risk assets. The reopening of the Strait of Hormuz, responsible for handling 20% of global oil, caused traders to unwind bets that were based on an extended conflict in the Middle East.
Prior to this rebound, bitcoin had been experiencing downward pressure and significant institutional outflows, creating opportunities for leveraged short sellers to increase their bets. Yet, once the news of the peace agreement broke, these positions were quickly unwound.
While the short squeeze resulted in the liquidation of approximately $150 million in shorts, the institutional outlook remains cautious. Spot bitcoin and ethereum exchange-traded funds (ETFs) recorded significant outflows, with bitcoin ETFs experiencing $316 million in withdrawals over the course of a week and ethereum ETFs seeing an additional $14.91 million in outflows. This divergence between the leveraged price surge and persistent fund redemptions makes it uncertain whether the foundation of the rally is stable.
Although liquidation-driven price movements can occur rapidly, they may reverse just as quickly once the forced buying subsides. The key test moving forward will be whether spot demand returns to stabilize prices following the abrupt short-covering. An official signing ceremony for the peace deal is scheduled for Friday in Switzerland, which analysts believe could either strengthen the risk-on sentiment in the market or potentially shift momentum back to the bears.
