Key Highlights
- BTC climbed to $78,000 following Iran’s brief reopening of the Strait of Hormuz before retreating to $76,000 when restrictions resumed in under 24 hours.
- The price spike generated $762 million in cryptocurrency liquidations, with short sellers absorbing $593 million in losses.
- Spot Bitcoin ETFs attracted 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 price corrections.
Bitcoin experienced dramatic price swings throughout the week, driven primarily by rapidly shifting geopolitical developments in the Middle East. The cryptocurrency’s value fluctuated sharply as news surrounding the Strait of Hormuz evolved.
Iran’s foreign minister declared on Friday that the Strait of Hormuz would be accessible to commercial vessels throughout the ceasefire period. President Donald Trump corroborated this announcement, stating that Iran had committed to an “unlimited” halt of its nuclear activities.
The digital asset rallied past the $78,000 threshold following this announcement. Conversely, energy markets responded with Brent crude plummeting approximately 10% to roughly $85 per barrel.
This upward movement catalyzed one of 2026’s most significant short squeezes. According to CoinGlass analytics, $762 million in aggregate liquidations occurred across 168,336 market participants. Short positions comprised $593 million of these liquidations, with bitcoin-specific shorts representing $381 million.
Funding rates for bitcoin perpetual contracts 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 this positioning.
ETF Capital Inflows Reach Three-Month Peak
While dramatic price movements captured market attention, Bitcoin ETFs quietly achieved their most impressive performance since January. SoSoValue data reveals spot Bitcoin ETFs collected $996 million in net capital inflows throughout the week.
Friday’s session alone delivered $663.9 million in inflows, marking the week’s largest single-day contribution. Combined net assets across all spot Bitcoin ETFs surpassed $101 billion, accompanied by daily trading volumes approaching $4.8 billion.
Ethereum-focused ETFs similarly attracted investor interest, securing approximately $276 million in weekly inflows based on 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 during this period.
Iranian Policy Reversal Triggers Bitcoin Correction
Fewer than 24 hours after announcing the waterway’s reopening, Iranian authorities reversed their stance. State media outlet Nour reported the strait had returned to “strict management and control by the armed forces,” attributing the decision to a U.S. blockade affecting Iranian ports.
Shipping company representatives informed Bloomberg that their vessels received Iranian radio communications instructing them to halt passage. One supertanker crew reported gunfire incidents and subsequently reversed course.
Bitcoin declined to $76,091 by Saturday evening Asian trading hours, maintaining only a 0.8% daily increase. Ethereum decreased 3% to approximately $2,365, while Solana dropped 1.3% and Dogecoin fell 2.1%.
Measured on a seven-day basis, XRP outperformed major cryptocurrencies with a 6.4% advance. BNB gained 4.6%, Ether increased 5.2%, and Bitcoin preserved a 4.7% weekly gain notwithstanding the weekend decline.
Bitunix market analysts 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.
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