Analysis: Bitcoin fell back to $76,000 due to the ongoing tensions in the Middle East; the renewed closure of the Strait of Hormuz triggered market volatility.

Affected by the fluctuating situation in the Middle East, the price of Bitcoin fell back to approximately $76,000. Previously, Iran's announcement of opening the Strait of Hormuz triggered a surge in risk assets and a massive short squeeze, but the subsequent re-closure of the strait caused a rapid reversal in market sentiment. Data shows that this round of price action triggered one of the largest liquidation events since 2026, with approximately 168,336 traders liquidated, totaling $762 million, of which short positions accounted for approximately $593 million, nearly three-quarters. During the upward phase, crude oil prices fell by nearly 10%, pushing Bitcoin above the key resistance level of $76,000 to $78,000; however, as the Strait of Hormuz returned to military control, several oil tankers turned back, risk aversion increased, and prices subsequently fell. Structurally, this rise was driven by a long-term negative funding rate, with short sellers continuously paying the costs of long positions, accumulating conditions for a squeeze. Despite the short-term pullback, Bitcoin still maintained a weekly gain of approximately 4.5%, while Ethereum and other mainstream assets performed relatively more steadily. Market focus is now shifting to the key support level of $76,000. A weekly close above this level could maintain the breakout structure; a break below could see the price return to the trading range that has existed since March. (CoinDesk)