Bitcoin Retreats to $76,000 Following Iran's Reversal on Hormuz

A notable short squeeze occurred in 2026, with bitcoin reaching $78,000 on Friday before pulling back to $76,091 by Saturday evening, representing a 0.8% daily increase. This volatility was triggered by Iran's announcement that the Strait of Hormuz would be closed to maritime traffic, less than 24 hours after its foreign minister declared it open. Two tanker owners reported receiving Iranian radio transmissions, with one supertanker aborting transit due to gunfire. In response to a U.S. blockade of Iranian shipping, state news agency Nour stated that Hormuz would be under strict management and control by the armed forces. Several oil tankers that had approached the strait on Friday turned back. The breakout rally on Friday ended with a $590 million shorts rout, primarily driven by bets on bitcoin, which accounted for $381 million in liquidations. The funding rates on bitcoin perpetuals had been negative for weeks, indicating that shorts were paying longs a premium to hold their positions. The initial reopening of the Strait of Hormuz on Friday served as a catalyst, causing crude oil to drop nearly 10% and bitcoin to break above the $76,000-$78,000 zone. However, the market pattern is now characterized by ceasefire headlines driving rallies, followed by reversal headlines that prevent breakouts from consolidating. Ether performed relatively better than bitcoin, with a 0.2% decline over 24 hours, while solana and dogecoin fell 1.3% and 2.1%, respectively. The question now is whether the $76,000 zone will hold into Monday's open, as a clean weekly close above this level would preserve the structural break despite the peace trade's whipsawing effect.