This development effectively removed the immediate threat of conflict near the Strait of Hormuz, allowing investors to rotate back into riskier assets with renewed confidence. The relief was palpable across asset classes, validating the thesis that Bitcoin currently acts as a high-beta proxy for global liquidity and risk appetite. The correlation between digital assets and traditional equities has never been more evident than in this recent trading session.

Data indicates a 95 per cent correlation between Bitcoin and the S&P 500 over the last 30 days, suggesting that both markets are reacting to the same macroeconomic drivers. As the geopolitical fog lifted, major US stock indices surged to record-high finishes. The S&P 500 rose 1.05 per cent to settle at a fresh all-time high of 7,137.90, completely erasing losses stemming from recent conflict fears.

The technology-heavy Nasdaq Composite advanced even further, gaining 1.64 per cent to close at a record 24,657.57. This performance was buoyed by a remarkable 16-day winning streak for chipmakers, highlighting the resilience of the technology sector. Even the more industrial-focused Dow Jones Industrial Average participated in the rally, adding 340.65 points, or 0.69 per cent, to finish at 49,490.03.

The Russell 2000 also joined the festivities, gaining 0.74 per cent to close at 2,785.38, indicating that the bullish sentiment was broad-based and not limited to just the largest-cap stocks. Bitcoin’s rally was not merely a passive reflection of stock market gains but was amplified by specific dynamics within the cryptocurrency market structure. A significant short squeeze played a crucial role in accelerating the price action.

As the price began to climb following the ceasefire news, leveraged bearish positions were forced to close rapidly. Data reveals that US$198.67M in Bitcoin positions were liquidated over the 24-hour period, with shorts accounting for US$187.33M of that total. This cascade of forced buying created a reflexive loop that pushed prices higher than organic demand alone would have.

The persistently negative funding rate suggests that bearish leverage remains in the system, which could fuel further squeezes if the upward momentum continues. This mechanical aspect of the rally underscores the volatility inherent in the current market phase, where sentiment can shift sharply due to leverage flushes. Underpinning this technical move was a robust fundamental narrative driven by institutional accumulation.

Despite the short-term volatility, long-term demand remains strong. US spot Bitcoin ETFs continued to see strong inflows, signalling that institutional investors are using these dips to add exposure. Furthermore, corporate buying remains a powerful force, exemplified by Strategy purchasing 34,164 BTC for US$2.54B.

This level of corporate accumulation validates the ongoing narrative that Bitcoin is being treated as a treasury reserve asset by forward-thinking companies. The combination of macro risk-off events ending and this steady institutional bid provides a solid floor for the asset, even as it approaches significant resistance levels. The market is essentially pricing in a scenario where geopolitical stability allows capital to flow freely back into scarce, high-growth assets.

Also Read: Bybit invests US$8M in Hata to crack Malaysia’s regulated crypto market The equity rally was further supported by a wave of robust corporate earnings that largely outperformed analyst expectations, adding fuel to the fire. Boeing saw its shares surge 5.5 per cent after reporting a smaller-than-expected first-quarter loss and providing healthy delivery projections, a sign that the aerospace giant is stabilising. GE Vernova jumped nearly 14 per cent after beating revenue expectations, underscoring strength in the energy sector.

Tesla also contributed to the positive sentiment, gaining in after-hours trading after beating earnings estimates, although shares later slipped as CEO Elon Musk cautioned about rising capital expenditures. The so-called Magnificent Seven tech names were instrumental in supporting the Nasdaq’s record run, with Apple rising 2.6 per cent and Amazon gaining 2.1 per cent. Microsoft also played a significant role in the index’s advancement.

This breadth of earnings strength suggests that the corporate sector is navigating the current economic environment better than many sceptics had anticipated. Commodities markets also reflected the shifting geopolitical landscape, albeit with some lingering caution. Brent crude oil climbed over three per cent to settle ne