In a significant market event, Bitcoin surged to $78,000 in a single session late Friday, leading to unprecedented liquidations that impacted over 168,000 traders. According to CoinGlass, these liquidations amounted to $762 million, with approximately $593 million attributed to short positions. By Saturday evening in Asia, Bitcoin’s price retreated slightly to $76,091, marking a modest 0.8% increase for the day. This shift occurred against a backdrop of geopolitical tensions, as Iran announced that it had once again closed the Strait of Hormuz to maritime traffic, just a day after its foreign minister had reported the route was open.
Tanker operators relayed communications from Iranian authorities, confirming the closure. Reports surfaced of gunfire incidents, with at least one supertanker aborting its journey through the strait. The Iranian state news agency Nour noted that the waterway was under “strict management and control by the armed forces,” a reaction to what they described as a U.S. blockade on Iranian shipping. Consequently, several oil tankers that had surged toward the strait following the initial reopening announced turned back.
The significant spike in Bitcoin prices led to a stark liquidations of short positions, totaling $590 million. Shorts accounted for a large portion of this, with $381 million tied to Bitcoin alone. Ether shorts also took a hit, contributing $167 million to the total. This short-heavy breakdown represented a notable shift in market dynamics, wherein short positions outnumbered long positions by nearly a ratio of four to one, the most pronounced since February.
Leading up to the rally, funding rates for Bitcoin perpetual contracts were negative, indicating that short sellers were compensating long holders for maintaining their positions. The catalyst for the breakout rally was the announcement regarding Iran’s initial reopening of the Strait of Hormuz. Following this news, crude oil barrels saw a nearly 10% decrease, dropping to $85.90, while Bitcoin breached the previously resistant range of $76,000 to $78,000 that had limited its rallies since the significant downturn in early February.
However, the gains were short-lived. President Donald Trump announced that Iran had agreed to an “unlimited” suspension of its nuclear program, although there was no confirmation from Iranian officials regarding this claim. As has been seen in past market patterns, ceasefire headlines often induce a rally only for a subsequent reversal to occur before sustained consolidation can take place.
As the market turned, Ethereum exhibited relative resilience compared to Bitcoin, declining only 0.2% over the same 24-hour period. In contrast, Solana and Dogecoin faced greater losses at 1.3% and 2.1%, respectively. On a weekly basis, Ethereum maintained a solid performance with a 5.2% increase, while XRP led the charge at 6.4%, followed closely by BNB at 4.6% and Bitcoin at 4.5%.
Looking ahead, market participants are left pondering whether the $76,000 level can hold through Monday’s open. A decisive weekly close above this threshold would sustain the momentum gained despite the recent fluctuations. On the other hand, a dip below it would plunge Bitcoin back into a trading range that has been established since March, albeit with a freshly diminished short position base that may be keen to rebuild.
