Bitcoin Price Drops to $76,000 Following Iran's Re-closure of Hormuz Strait

A major short squeeze took place in a single session, with bitcoin reaching $78,000 on Friday before pulling back to $76,091 by Saturday evening. This occurred after Iran announced the re-closure of the Strait of Hormuz, less than 24 hours after it was declared open. The move triggered a $762 million liquidation across 168,336 traders, with $593 million of that being on the short side. Two tanker owners reported receiving Iranian radio transmissions shutting the waterway, with one supertanker aborting transit due to gunfire. The re-closure was reportedly in response to a U.S. blockade of Iranian shipping. Friday's rally ultimately ended in a $590 million shorts rout, with bets on bitcoin accounting for $381 million in liquidations. The setup had been building for weeks, with funding rates on bitcoin perpetuals pinned negative, meaning shorts were paying longs a premium to hold their positions. The Hormuz reopening was the catalyst that flipped the market, but the reversal headline arrived before the breakout could consolidate. The market pattern is now familiar, with ceasefire headlines driving a rally, but a reversal headline arriving before the breakout can consolidate. Ether held up better than bitcoin on the retreat, down just 0.2% over 24 hours, while solana dropped 1.3% and dogecoin fell 2.1%. The question now is whether the $76,000 zone will hold into Monday's open, with a clean weekly close above $76K preserving the structural break.