Key Highlights
- BTC climbed to $78,000 following Iran’s temporary reopening of the Strait of Hormuz, before declining to $76,000 as the strait was closed once more in under 24 hours.
- The price spike generated $762 million in cryptocurrency liquidations, with short sellers absorbing $593 million in losses.
- Spot Bitcoin ETFs recorded nearly $1 billion in weekly capital 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 registered weekly profits despite weekend losses.
Bitcoin experienced significant volatility this week as Middle Eastern geopolitical developments dominated market sentiment. The cryptocurrency’s value fluctuated dramatically as the situation surrounding the Strait of Hormuz evolved rapidly.
Last Friday, Iran’s foreign ministry declared the Strait of Hormuz open for commercial maritime traffic during an active ceasefire period. President Donald Trump corroborated the announcement, stating Iran had committed to an “unlimited” halt of its nuclear activities.
The announcement propelled Bitcoin beyond the $78,000 threshold. Conversely, crude oil markets responded with a downturn, as Brent crude plummeted approximately 10% to settle near $85 per barrel.
This rally initiated one of 2026’s most substantial short squeezes. According to CoinGlass data, $762 million worth of positions were liquidated across 168,336 traders. Short positions represented $593 million of these liquidations, with bitcoin-specific shorts contributing $381 million.
Bitcoin perpetual futures funding rates had remained in negative territory for several weeks, indicating short sellers were compensating long position holders. The Hormuz development served as the catalyst that unwound this positioning.
Bitcoin ETF Capital Inflows Reach Three-Month Peak
While dramatic price movements captured market attention, Bitcoin exchange-traded funds quietly recorded their most impressive week since January. SoSoValue data reveals spot Bitcoin ETFs attracted $996 million in net capital inflows throughout the week.
Friday’s session alone contributed $663.9 million, representing the week’s largest single-day inflow. Combined net assets across all spot Bitcoin ETFs surpassed $101 billion, while daily trading activity approached $4.8 billion.
Ethereum-based ETFs similarly experienced strong demand, collecting approximately $276 million during the week, per Farside Investors tracking.
Morgan Stanley’s recently introduced Bitcoin Trust contributed to this positive trend. The investment vehicle now manages $120 million in assets following just six trading sessions, surpassing WisdomTree’s holdings in that timeframe.
Iran’s Policy Reversal Drives Bitcoin Decline
Fewer than 24 hours after announcing the Hormuz reopening, Iranian authorities reversed their position. State media outlet Nour reported the strait had returned to “strict management and control by the armed forces,” attributing the decision to an American blockade of Iranian shipping facilities.
Multiple tanker operators informed Bloomberg their vessels received Iranian military communications directing them to halt passage. One supertanker crew reported weapons fire and subsequently reversed direction.
Bitcoin declined to $76,091 by Saturday evening Asian trading hours, registering a modest 0.8% daily increase. Ethereum decreased 3% to approximately $2,365, while Solana fell 1.3% and Dogecoin dropped 2.1%.
Examining weekly performance, XRP emerged as the top performer among major cryptocurrencies with a 6.4% advance. BNB gained 4.6%, Ether climbed 5.2%, and Bitcoin maintained a 4.7% weekly increase despite the weekend correction.
Bitunix market analysts observed that Bitcoin continues trading within an established range, encountering resistance above $75,000 and finding support around $72,000 based on their most recent assessment.
