TLDR
- Bitcoin climbed to $78,000 following Iran’s temporary reopening of the Strait of Hormuz, before retreating to $76,000 after the waterway was closed again in under 24 hours.
- The price spike led to $762 million in liquidations across cryptocurrency markets, with short positions accounting for $593 million of the total.
- Spot Bitcoin ETFs recorded nearly $1 billion in weekly net inflows — the strongest performance since January.
- Morgan Stanley’s new Bitcoin Trust fund accumulated $120 million in assets within its first six days of trading.
- Major altcoins including Ether, XRP, BNB, and Solana recorded weekly gains despite weekend declines.
Geopolitical developments in the Middle East sent Bitcoin on a turbulent journey this week. Price action swung dramatically as rapidly evolving news regarding the Strait of Hormuz created market uncertainty.
Friday brought an announcement from Iran’s foreign minister that the Strait of Hormuz would permit commercial shipping traffic during an active ceasefire period. President Donald Trump corroborated the development, stating Iran had committed to an “unlimited” halt to its nuclear activities.
The cryptocurrency market responded immediately, pushing Bitcoin past the $78,000 threshold. Meanwhile, energy markets exhibited inverse movement, with Brent crude plummeting nearly 10% to approximately $85 per barrel.
This sudden rally created one of 2026’s most significant short squeezes. CoinGlass data reveals total liquidations reached $762 million across 168,336 traders. Short position liquidations comprised $593 million, with bitcoin shorts alone representing $381 million of that figure.
Bitcoin perpetual contract funding rates had remained in negative territory for multiple weeks, indicating short sellers were paying premiums to maintain their bearish positions. The Hormuz development provided the catalyst that unwound these bets.
ETF Inflows Reach Three-Month Peak
Beyond the dramatic price movements, Bitcoin ETFs delivered their most impressive weekly performance since January. SoSoValue tracking data indicates spot Bitcoin ETFs captured $996 million in net inflows throughout the week.
Friday represented the week’s strongest single session, attracting $663.9 million in net flows. Combined net assets across all spot Bitcoin ETFs surpassed $101 billion, while daily trading volumes approached $4.8 billion.
Ethereum-focused ETFs also demonstrated strength, recording approximately $276 million in weekly inflows according to Farside Investors data.
Morgan Stanley’s recently introduced Bitcoin Trust contributed to this positive trend. The investment vehicle has accumulated $120 million in assets during just six trading sessions, surpassing WisdomTree’s holdings in that timeframe.
Iran Policy Reversal Triggers Bitcoin Decline
Fewer than 24 hours after announcing the strait’s reopening, Iranian authorities reversed their position. State-controlled Nour news agency reported the waterway had returned to “strict management and control by the armed forces,” attributing the decision to alleged U.S. blockades of Iranian ports.
Reports from two tanker operators to Bloomberg confirmed their vessels received Iranian radio directives ordering them to halt passage. One supertanker crew reported hearing gunfire and subsequently reversed direction.
Bitcoin declined to $76,091 by Saturday evening in Asian markets, maintaining only a 0.8% daily gain. Ethereum decreased 3% to approximately $2,365, while Solana shed 1.3% and Dogecoin fell 2.1%.
Despite weekend volatility, weekly performance remained positive across major tokens. XRP topped the leaderboard with a 6.4% advance. BNB gained 4.6%, Ether rose 5.2%, and Bitcoin preserved a 4.7% weekly increase despite the Saturday pullback.
Bitunix analysts observed that Bitcoin continues operating within an established trading range, encountering resistance above $75,000 and finding support near $72,000 according to their most recent assessment.
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