Key Highlights
- BTC reached $78,000 following Iran’s temporary reopening of the Strait of Hormuz, before declining to $76,000 when authorities closed the strait again in under 24 hours.
- The price movement resulted in $762 million worth of crypto liquidations, with short positions accounting for $593 million of the total.
- Spot Bitcoin ETFs recorded nearly $1 billion in weekly inflows — marking their strongest week since January.
- Morgan Stanley’s new Bitcoin Trust fund accumulated $120 million in assets within its first six trading days.
- Major altcoins including Ether, XRP, BNB, and Solana recorded weekly gains even after the weekend decline.
Bitcoin experienced significant volatility throughout the week, primarily influenced by rapidly changing geopolitical developments in the Middle East. Price movements reflected the fast-paced news surrounding the Strait of Hormuz situation.
Friday brought an announcement from Iran’s foreign minister that the Strait of Hormuz would permit commercial shipping during a ceasefire period. U.S. President Donald Trump confirmed the development, stating Iran had committed to an “unlimited” halt of its nuclear program.
BTC climbed above $78,000 following this announcement. Meanwhile, oil markets reacted inversely, with Brent crude dropping nearly 10% to approximately $85 per barrel.
The upward price movement created one of 2026’s largest short squeezes. CoinGlass data reveals $762 million in total liquidations affecting 168,336 traders. Short positions represented $593 million of that figure, with bitcoin shorts contributing $381 million.
Funding rates on bitcoin perpetuals had remained negative for several weeks, indicating shorts were paying premiums to maintain their positions. The Hormuz announcement served as the catalyst that reversed this dynamic.
Bitcoin ETF Inflows Reach Three-Month Peak
While price volatility dominated market attention, Bitcoin ETFs achieved their most impressive performance since January. SoSoValue data indicates spot Bitcoin ETFs attracted $996 million in net inflows during the week.
Friday recorded $663.9 million in inflows, representing the week’s highest single-day figure. Combined net assets across all spot Bitcoin ETFs rose above $101 billion, with daily trading volumes approaching $4.8 billion.
Ethereum ETFs also demonstrated strong performance, attracting close to $276 million throughout the week, based on Farside Investors data.
Morgan Stanley’s recently introduced Bitcoin Trust contributed to this positive trend. The fund now oversees $120 million in assets following just six trading days, surpassing WisdomTree during this period.
Iran Closes Strait Again, Pulling BTC Lower
Fewer than 24 hours after announcing the Hormuz reopening, Iran changed direction. State news agency Nour reported the strait had returned to “strict management and control by the armed forces,” attributing the decision to a U.S. blockade of Iranian ports.
Two tanker operators informed Bloomberg that their vessels received Iranian radio communications directing them to halt transit. One supertanker encountered gunfire and reversed course.
Bitcoin declined to $76,091 by Saturday evening in Asian markets, showing a modest 0.8% daily increase. Ethereum decreased 3% to approximately $2,365, while Solana dropped 1.3% and Dogecoin fell 2.1%.
Weekly performance showed XRP leading major tokens with a 6.4% increase. BNB gained 4.6%, Ether rose 5.2%, and Bitcoin maintained a 4.7% weekly advance despite the weekend pullback.
Bitunix analysts observed that Bitcoin was trading within an established range, facing resistance above $75,000 and finding support near $72,000 according to their most recent analysis.
