TLDR
BTC climbed to $78,000 following Iran’s temporary reopening of the Strait of Hormuz, before retreating to $76,000 when the passage was shut down again less than a day later.
The upward move sparked $762 million in cryptocurrency liquidations, with short positions accounting for $593 million of the total.
Spot Bitcoin ETFs recorded approximately $1 billion in weekly inflows — marking their strongest performance since January.
Morgan Stanley introduced a Bitcoin Trust fund that has accumulated $120 million in assets within its first six days of trading.
Major altcoins including Ether, XRP, BNB, and Solana registered weekly gains despite experiencing weekend declines.
Bitcoin experienced significant volatility this week as geopolitical developments in the Middle East dominated market sentiment. The digital asset’s price fluctuated dramatically as circumstances surrounding the Strait of Hormuz evolved rapidly.
Iran’s foreign minister declared on Friday that the Strait of Hormuz would be accessible to commercial vessels throughout the duration of a ceasefire agreement. President Donald Trump corroborated the announcement, stating that Iran had committed to an “unlimited” halt of its nuclear activities.
The cryptocurrency market reacted swiftly, pushing Bitcoin beyond the $78,000 threshold. Conversely, energy markets moved in the opposite direction as Brent crude plummeted nearly 10% to approximately $85 per barrel.
This breakout catalyzed one of 2026’s most substantial short squeezes. According to CoinGlass analytics, the market witnessed $762 million in aggregate liquidations affecting 168,336 traders. Short positions comprised $593 million of these liquidations, with bitcoin shorts specifically representing $381 million.
Funding rates for bitcoin perpetual contracts had remained in negative territory for several weeks, indicating that short sellers were compensating longs to maintain their bearish positions. The Hormuz announcement served as the catalyst that reversed this dynamic.
ETF Inflows Reach Three-Month Peak
While price movements captured market attention, Bitcoin ETFs silently achieved their most impressive week since January. SoSoValue data reveals that spot Bitcoin ETFs attracted $996 million in net inflows throughout the week.
Friday recorded the week’s largest single-day influx with $663.9 million entering the funds. Combined net assets across all spot Bitcoin ETFs surpassed $101 billion, accompanied by daily trading volumes approaching $4.8 billion.
Ethereum-focused ETFs similarly demonstrated strength, accumulating nearly $276 million over the week, per Farside Investors data.
Morgan Stanley’s recently unveiled Bitcoin Trust contributed to this trend. The financial product has already amassed $120 million in assets despite having only six trading days under its belt, surpassing WisdomTree during this brief period.
Iran Policy Reversal Triggers Bitcoin Decline
Fewer than 24 hours following the Hormuz reopening announcement, Iranian authorities reversed their position. The Nour state news outlet reported that the strait had returned to “strict management and control by the armed forces,” attributing the change to a U.S. blockade targeting Iranian ports.
Multiple tanker operators informed Bloomberg that their ships received Iranian radio communications instructing them to halt passage. One supertanker captain reported hearing gunfire and subsequently reversed direction.
Bitcoin declined to $76,091 by Saturday evening in Asian trading hours, maintaining just a 0.8% daily increase. Ethereum decreased 3% to approximately $2,365, while Solana slipped 1.3% and Dogecoin fell 2.1%.
Examining weekly performance, XRP outperformed all major cryptocurrencies with a 6.4% advance. BNB gained 4.6%, Ether climbed 5.2%, and Bitcoin preserved a 4.7% weekly increase despite the weekend pullback.
Market analysts at Bitunix observed that Bitcoin continues trading within an established range, encountering resistance above $75,000 and finding support near $72,000 according to their most recent assessment.
