Bitcoin Drops to $76,000 as Iran Reverses Hormuz Reopening

A significant short squeeze occurred in a single session, with Bitcoin surging to $78,000 on Friday before pulling back to $76,091 by Saturday evening. The sudden reversal came as Iran announced the reclosure of the Strait of Hormuz, less than 24 hours after its foreign minister declared it fully open. This development led to a $762 million liquidation across 168,336 traders, with $593 million of that being on the short side. The move also impacted oil tankers, with several turning back after receiving Iranian radio transmissions shutting the waterway. The Hormuz reopening had initially sparked a breakout rally, which ended in a $590 million shorts rout. However, the setup had been building for weeks, with funding rates on Bitcoin perpetuals pinned negative. The market is now awaiting to see if the $76,000 zone will hold into Monday's open, with a clean weekly close above this level needed to preserve the structural break.