Bitcoin Slips Back to Around $76,000 as Middle East Risks Return After Hormuz Strait Reclosure

Bitcoin retreated to around $76,000 as renewed Middle East tensions drove a fresh bout of risk-off trading. The latest swing followed a rapid reversal tied to the Strait of Hormuz: Iran's decision to reopen the passage initially sparked a risk-asset rally and a sharp short squeeze, but sentiment flipped after the waterway was closed again. The move triggered one of the largest liquidation waves since 2026. Roughly 168,336 traders were liquidated for a combined $762 million, with short positions accounting for about $593 million—nearly three-quarters of the total. During the squeeze, oil prices briefly fell nearly 10%, helping Bitcoin punch through a key resistance zone between $76,000 and $78,000. Prices later pulled back as the strait returned to military control and several tankers reportedly turned around. Structurally, the rally was fueled by persistently negative funding rates, which kept shorts paying longs and set the stage for a squeeze. Even with the near-term pullback, Bitcoin remains up about 4.5% on the week, while Ethereum has held up better. Traders are now watching $76,000 as the key support. A weekly close above that level would help preserve the breakout setup; a break below could send Bitcoin back into the trading range in place since March. (CoinDesk)