# Bitcoin Price Rebounds as Crypto Shorts Face $150 Million Liquidation

**Published:** 2026-05-15T17:09:13.000Z  
**Topic:** Ethereum  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/37b868a3-5451-4272-be2e-95dbc499a1c4

Bitcoin reclaimed $65,000 as $150 million in short positions were liquidated. Discover how shifting geopolitical tensions are impacting crypto markets.

Bitcoin reclaimed the $65,000 level this week, triggering the liquidation of approximately $150 million in short positions as bearish traders were squeezed by the sudden price action [1]. The rally followed reports of a peace deal between the United States and Iran, which provided a brief reprieve from the geopolitical volatility that has dominated global markets [1].

While Bitcoin’s move toward $66,000 signaled a shift in momentum, the broader market remains sensitive to the ongoing instability surrounding the Strait of Hormuz [1]. The conflict has kept oil prices elevated, fueling concerns about stagflation as core PCE inflation remains at 3.1%, well above the Federal Reserve’s 2% target [2]. Despite these macroeconomic pressures, institutional interest in digital assets has shown signs of resilience. U.S. spot Bitcoin ETFs recorded inflows on all five trading days of the week, totaling $767 million [2].

Ethereum has struggled to keep pace with Bitcoin’s recovery, though it continues to see its own institutional support. Spot Ethereum ETFs added $160.8 million in net inflows over the same period [2]. The launch of BlackRock’s iShares Staked Ethereum Trust ETF also marked a notable development, recording $15.5 million in first-day volume and accumulating over $100 million in assets [2]. 

The divergence between crypto’s recent performance and traditional equities suggests a potential decoupling. While the S&P 500 shed 1.6% and the Dow fell 2% amid the global sell-off, Bitcoin has outperformed both tech stocks and gold on a two-week basis [2]. Analysts suggest this may indicate that Bitcoin is beginning to function more as a macro-diversifier rather than a pure risk-on instrument, though the sustainability of this trend remains unproven [2].

The market now turns its attention to the upcoming Federal Reserve meeting, where a hold on interest rates is widely expected [2]. With the labor market showing signs of cracking—evidenced by a shock -92,000 print in the February payrolls report—the central bank faces a difficult path in balancing cooling economic growth against persistent inflation [2]. 

Whether Bitcoin can maintain its current range or break toward higher resistance depends largely on whether this institutional bid represents a lasting shift in sentiment or merely a reflexive reaction to low liquidity. As the Fed prepares to update its economic projections, the primary question for investors is whether the asset class can sustain its newfound role as a hedge against geopolitical and inflationary uncertainty.

## Sources
1. News — [Bitcoin.com News: Latest Crypto News Across All Key Markets](https://news.bitcoin.com/)
2. Zerocap — [Weekly Crypto Market Wrap: 16 March 2026 - Zerocap](https://zerocap.com/insights/weekly-crypto-market-wrap/weekly-crypto-market-wrap-16-march-2026/)
3. Fxstreet — [Crypto Weekly Radar: Bitcoin gains constrained, sentiment weak...](https://www.fxstreet.com/news/crypto-weekly-radar-bitcoin-gains-constrained-sentiment-weak-amid-ceasefire-token-unlocks-202604131636)

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Cite as: TrendWatcher, "Bitcoin Price Rebounds as Crypto Shorts Face $150 Million Liquidation", https://www.trendwatcher.in/article/37b868a3-5451-4272-be2e-95dbc499a1c4