The cryptocurrency market faced a wild swing on Friday, leading to sharp losses for investors betting on price declines. Bitcoin jumped rapidly to test the $78,000 level during the evening hours. Throughout this volatility, a staggering $762 million in positions were liquidated across the market. According to CoinGlass data, $593 million of these liquidations originated from short positions—those wagering that the price would drop.
Strategic crossroads: Hormuz crisis shakes global markets
During Asian trading hours, Bitcoin slipped back down to $76,091. Despite a daily gain of just 0.8%, the most critical driver of volatility came from news bulletins broadcast by Iranian state channels. Roughly 24 hours after Iran’s Foreign Minister declared the Strait of Hormuz reopened, reports emerged that the strait was once again closed to shipping. Two tanker owners told Bloomberg they had intercepted Iranian radio messages and that one supertanker decided to abort its passage due to the risk of attack.
The state-run Nour news agency reported that authority over the passage had reverted to the firm control of Iran’s armed forces. Prior to these developments, several oil tankers had rushed toward the region following early reports of the strait reopening, but they rapidly altered course once the closure was confirmed again.
Record short liquidations rattle market balance
Friday’s sudden surge in prices delivered a heavy blow to investors taking risky short-term bets against the market. In total, $590 million in short positions were liquidated—a sharp figure, with $381 million tied to Bitcoin contracts alone. For Ethereum, liquidations of short positions reached $167 million. Overall, short positions accounted for nearly four times the volume of total liquidations, marking the biggest wave of short-focused closures seen since February.
A major factor in this scenario was the emergence of negative funding rates for Bitcoin perpetual contracts in recent weeks. These rates indicated that traders were willing to pay a premium to hold short positions, reflecting widespread market pessimism and a strong expectation for prices to fall.
Following news that the Strait of Hormuz had reopened on Friday, oil prices plummeted nearly 10% to $85.90, while Bitcoin climbed above its technical resistance between $76,000 and $78,000 for the first time since the February crash.
Weekly performance: How Ethereum, XRP, and others fared
Although Bitcoin’s rally was short-lived, the broader market trends remained notable. As Bitcoin pulled back, Ethereum slipped 0.2%, Solana fell 1.3%, and Dogecoin dropped 2.1%. On a weekly basis, however, XRP outperformed with a 6.4% gain, followed by Ethereum up 5.2%, BNB rising 4.6%, and Bitcoin itself advancing 4.5%.
Whether Bitcoin can hold above the $76,000 threshold at Monday’s open is now a central question for technical analysts. If a weekly close comes in above this level—provided geopolitical developments remain subdued—analysts suggest Bitcoin could break out of its long-standing trading range. However, dropping back below could signal a return to the range-bound conditions that have persisted since March.
