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

A major short squeeze occurred in 2026, culminating in a single session. Bitcoin reached $78,000 late on Friday, triggering $762 million in liquidations across 168,336 traders, with $593 million of that amount attributed to short positions, according to CoinGlass. By Saturday evening in Asia, bitcoin had retreated to $76,091, resulting in a mere 0.8% increase for the day, as Iran announced the reclosure of the Strait of Hormuz to maritime traffic, less than 24 hours after its foreign minister declared it fully open. Two tanker owners informed Bloomberg that their vessels received Iranian radio transmissions, ordering the closure of the waterway, with one supertanker reporting gunfire and aborting its transit. The state news agency Nour stated that Hormuz had returned to 'strict management and control by the armed forces' in response to a U.S. blockade of Iranian shipping, prompting several oil tankers to turn back after initially approaching the strait following the reopening news. The breakout rally on Friday culminated in a $590 million shorts rout, with bets on bitcoin accounting for $381 million in liquidations, the largest share, followed by ether shorts at $167 million. Shorts outnumbered longs by nearly four to one, representing the most pronounced short-heavy breakdown in a liquidation event since February. The setup had been building for weeks, with funding rates on bitcoin perpetuals pinned negative, indicating that shorts were paying longs a premium to hold their positions. The initial reopening of the Hormuz Strait on Friday served as the catalyst that triggered the reversal. Crude oil prices dropped nearly 10% to $85.90 per barrel, and bitcoin broke above the $76,000-$78,000 zone that had capped every rally attempt since the February 5 crash. However, the developments did not survive into Saturday intact. President Donald Trump stated that Iran had agreed to an 'unlimited' suspension of its nuclear program, although Tehran never confirmed this claim. The market pattern is now familiar, where ceasefire headlines drive a rally, but a reversal headline arrives before the breakout can consolidate, resulting in a forced unwind that sets up another challenge. Ether performed better than bitcoin during the retreat, declining by only 0.2% over 24 hours, while solana dropped 1.3% and dogecoin fell 2.1%. On a weekly basis, ether is still up 5.2%, XRP leads at 6.4%, BNB added 4.6%, and bitcoin sits at 4.5%. The question now is whether the $76,000 zone will hold into Monday's open. A clean weekly close above $76,000 would preserve the structural break, even if the peace trade continues to fluctuate. A loss of this level would put bitcoin back in the same range it has been trapped in since March, this time with the short base that just got wiped out looking to rebuild.