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

The largest short squeeze of 2026 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, just hours after its foreign minister declared it open. The move led to a $762 million liquidation of 168,336 traders, with $593 million of that being shorts. Tanker owners reported receiving Iranian radio transmissions and even gunfire, prompting them to turn back. State news agency Nour stated that the strait was under 'strict management and control by the armed forces' in response to a US blockade. The setup for this event had been building for weeks, with negative funding rates on Bitcoin perpetuals indicating that shorts were paying longs a premium to hold their positions. The initial reopening of the Strait of Hormuz on Friday led to a significant drop in crude oil prices and a breakout rally for Bitcoin, but this was short-lived. By Saturday, the market had reversed, with Bitcoin and other cryptocurrencies experiencing losses. The question now is whether the $76,000 level will hold into the next week, and whether the structural break will be preserved despite the ongoing whipsawing of the peace trade.