TLDR
- Bitcoin climbed above $79,000, its highest price since early February
- Crypto stocks surged, with Strategy up 10%, Circle up 9%, and Coinbase up 6%
- Heavy short positioning in Bitcoin derivatives could trigger a short squeeze
- The S&P 500 and Nasdaq both closed at all-time highs on Wednesday
- Tesla slipped after hours as Elon Musk warned of rising capital expenditure
Bitcoin pushed above $79,000 on Wednesday, reaching its highest level since early February. The move marked a 4.5% gain over 24 hours.
Major altcoins followed Bitcoin higher. Ether, BNB, Solana, and XRP all posted gains. The CoinDesk 20 Index, which tracks the broader crypto market, rose 3.5%.
Crypto-related stocks had a strong session. Strategy, the largest corporate Bitcoin holder, jumped 10%. Stablecoin issuer Circle gained 9%, and crypto exchange Coinbase rose 6%. Bitcoin miners MARA Holdings and Riot Platforms each added between 6% and 7%.
The stock market also had a record day. The S&P 500 closed up 1% and the Nasdaq Composite gained 1.6%, both finishing at all-time highs. The Dow Jones added 0.7%.
The rally came after President Donald Trump said late Tuesday that he would extend the Iran ceasefire while keeping a naval blockade of the Strait of Hormuz in place.
🚨JUST IN: Iran has reportedly attacked multiple commercial ships in the Strait of Hormuz, hours after President Trump announced a ceasefire extension, per NBC.
The IRGC reportedly fired on at least 3 vessels today.
One container ship sustained heavy damage.
Iran claims it… pic.twitter.com/jnND8aoQVs
— Coin Bureau (@coinbureau) April 23, 2026
Paul Howard, senior director at Wincent, said Bitcoin’s near-term direction “remains highly dependent on macro and geopolitical developments.” He identified $72,000 as a key support level, with potential resistance near $80,000.
Short Squeeze Conditions Building in Bitcoin
Derivatives data is adding to the bullish case for Bitcoin. According to Vetle Lunde, head of research at K33 Research, seven-day funding rates in perpetual swaps are near three-year lows, meaning traders are heavily positioned short.
At the same time, open interest is rising, which suggests new leveraged positions are entering the market.
Lunde said the combination of rising leverage and deeply negative funding means shorts are building up in the market. He added that this increases “both the likelihood and potential magnitude of a short squeeze.”
“We continue to see strong breakout potential for BTC, with concentrated shorts providing ample fuel for a move higher,” Lunde wrote.
The $80,000 level carries extra weight. It aligns with the short-term holder realized price, which is the average cost basis for newer Bitcoin investors. These holders tend to sell into strength, so clearing that level cleanly could signal stronger conviction behind the rally.
After-Hours Moves Add Uncertainty
After the closing bell, Tesla initially rose on an earnings beat but later slipped around 2%. CEO Elon Musk said capital expenditure would be increasing and stated that Tesla’s HW3.0 cars do not have the capability for self-driving.
ServiceNow fell 11.9% in extended trading despite beating earnings expectations. IBM dropped 6.8% on slowed revenue growth, with concerns that Anthropic could disrupt its business model.
Oil markets moved higher despite the Iran ceasefire news. Iran’s navy seized two container ships in the Strait of Hormuz. Brent crude jumped back above $100 a barrel, while West Texas Intermediate hovered near $92.
Investors are now watching earnings from American Express, Blackstone, and American Airlines, along with preliminary April readings for S&P Global manufacturing.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
