Bitcoin Price Drops to $76,000 as Iran Closes Strait of Hormuz Again

One of the most substantial short squeezes of 2026 occurred within a single session. Bitcoin reached $78,000 on Friday, triggering $762 million in liquidations across 168,336 traders, with $593 million of those being short positions, according to CoinGlass. By Saturday evening in Asia, bitcoin had retreated to $76,091, up only 0.8% for the day, after Iran announced the closure of the Strait of Hormuz to maritime traffic, less than 24 hours after it was declared fully open. This development led to a tanker owner reporting gunfire and aborting transit, with several oil tankers turning back. The Iranian state news agency attributed the closure to a U.S. blockade of Iranian shipping, stating that the strait was under 'strict management and control by the armed forces.' Friday's rally ended with a $590 million rout of shorts, with bets on bitcoin accounting for $381 million in liquidations. The setup for this 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 Strait of Hormuz on Friday served as the catalyst, leading to a 10% drop in crude oil prices to $85.90 per barrel and a breakout of bitcoin above the $76,000-$78,000 zone. However, this was short-lived, as President Donald Trump's statement about Iran's agreement to suspend its nuclear program was not confirmed by Tehran. The market pattern is now familiar, with ceasefire headlines driving rallies, only to be followed by reversal headlines before the breakout can consolidate, resulting in a forced unwind. Ether performed better than bitcoin, with a 0.2% decline over 24 hours, while solana and dogecoin dropped 1.3% and 2.1%, respectively. On a weekly basis, ether is up 5.2%, XRP leads with a 6.4% gain, 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, as a clean weekly close above $76,000 would preserve the structural break, despite the peace trade whipsawing the market.