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

A notable short squeeze occurred in 2026, with bitcoin surging to $78,000 on Friday, triggering $762 million in liquidations across 168,336 traders, $593 million of which were short positions, according to CoinGlass. By Saturday evening, bitcoin had retreated to $76,091, up only 0.8% for the day, after Iran announced the reclosure of the Strait of Hormuz to maritime traffic, less than 24 hours after its foreign minister declared it fully open. This development led to a $590 million rout of short positions, with bitcoin bets accounting for $381 million in liquidations, followed by ether shorts at $167 million. The setup for this event 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. Friday's Hormuz reopening served as the catalyst, causing crude oil to drop nearly 10% to $85.90 per barrel and bitcoin to break above the $76,000-$78,000 zone that had capped every rally attempt since the February 5 crash. However, this momentum was short-lived, as the market pattern of ceasefire headlines driving a rally, only to be followed by a reversal headline, has become familiar. The forced unwind has created another setup for the market to work against. Ether held up relatively better than bitcoin, down only 0.2% over 24 hours, while solana and dogecoin dropped 1.3% and 2.1%, respectively. On a weekly basis, ether is still up 5.2%, XRP leads with a 6.4% gain, BNB added 4.6%, and bitcoin sits at 4.5%. The key question now is whether the $76,000 zone will hold into Monday's open, as a clean weekly close above $76,000 would preserve the structural break, despite the peace trade whipsawing the market.