From the American-Iranian war
Bitcoin’s price rose above $87,000 on Monday, recording gains of around 7% over 24 hours, reaching its highest level since January. The increase came amid a broad uptrend in the crypto market, supported by improved risk sentiment, lower bond yields, the liquidation of short positions, and increased demand for Bitcoin exchange-traded funds (ETFs).
### Trump’s proposal for an energy-reconstruction fund in the Gulf
The rally coincided with a proposal by Donald Trump's administration to invest $5 billion in a new fund for the restoration of energy in the Middle East. According to what was reported by The Wall Street Journal, the fund aims to support energy infrastructure damaged during the seven-month Iranian war.
The fund proposes matching contributions from countries such as Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan. It also focuses on repairing energy infrastructure that has been damaged and creating alternative routes to transport oil and gas in order to reduce reliance on the Strait of Hormuz.
Energy markets are an important factor for risk assets, because oil prices influence inflation expectations and U.S. Treasury bond yields. Bitcoin’s rise coincided with falling oil prices and declining bond yields.
### Short pressure pushes Bitcoin above $87,000
The rise led to the liquidation of short-selling positions in the crypto currency market worth nearly $919 million, including more than $557 million in Bitcoin alone. When short sellers are forced to close their positions, buying pressure increases, supporting the continuation of the rally.
Leverage remained elevated even after the liquidation wave, as traders added new positions during the upward move. Glassnode data indicated that the price of Bitcoin stayed above its real market average and the cost basis of short-term holders—an area historically associated with stronger market periods.
### The analysis points to $90,000 and $100,000
A Bitcoin breakout drew attention toward the $90,000 zone. Analyst Michael van de Poppe identified the $90,000–$91,000 range as the next level to watch, suggesting that stronger momentum could push the price toward $98,000–$100,000.
In prediction markets, the Polymarket platform showed a 42% chance that Bitcoin will reach $100,000 before the end of 2026.
Santiment reported that Bitcoin’s Fear of Missing Out (FOMO) levels have reached their highest since 2024. Open Interest also rose by 7.6% to around $156 billion, suggesting new leverage may increase volatility near the resistance level of $90,000.
Note: The continuation of the rally depends on immediate demand (spot) persisting after the short squeeze, and the market’s ability to absorb new leverage around the $90,000 level.