Bitcoin briefly surged to $76,091 during Asian hours on Friday before retreating, as conflicting reports about the Strait of Hormuz reopening and reclosing sent shockwaves through markets. According to CoinTurk, total liquidations hit $762 million, with short positions accounting for $590 million — the largest short squeeze since February.
Hormuz Crisis: Oil Tanks and Bitcoin Tanks Move in Tandem
Iranian state media reported that the strait was once again under the control of the Islamic Revolutionary Guard Corps, hours after the foreign minister declared it open. Two tanker owners intercepted radio messages, leading one supertanker to abort its passage. Oil prices dropped nearly 10% to $85.90, while Bitcoin broke above the $76,000–$78,000 resistance zone for the first time since February's crash.
Negative Funding Rates Set the Stage for a Short Squeeze
Bitcoin perpetual contracts had been trading with negative funding rates in recent weeks, indicating that bears were paying a premium to hold short positions. This crowded short setup made the market vulnerable to a sudden upside move. $381 million of Bitcoin shorts and $167 million of Ethereum shorts were liquidated alone.
Weekly Winners: XRP Leads, ETH and BNB Follow
Despite the pullback, most majors posted solid weekly gains. XRP led with 6.4%, followed by Ethereum at 5.2%, BNB at 4.6%, and Bitcoin at 4.5%. On the day, Solana fell 1.3% and Dogecoin dropped 2.1%.
Key Level to Watch: $76,000 Support
Whether Bitcoin can hold above $76,000 at Monday’s open is the key question for technical analysts. A weekly close above this level — absent fresh geopolitical turmoil — could signal a breakout from the range that has persisted since March. A failure would likely mean a return to range-bound conditions.