Bitcoin experienced a sharp rally followed by a swift pullback as conflicting reports regarding the status of the Strait of Hormuz injected extreme volatility into the crypto market. The price initially surged to approximately $78,000 late on Friday, April 18, 2026, triggering a massive $762 million in liquidations across 168,336 traders. Of this total, a disproportionate $593 million came from short positions, with bitcoin shorts alone accounting for $381 million in liquidations, followed by ether shorts at $167 million.
The rally was catalyzed by news that Iran had reopened the critical maritime passage. This caused crude oil prices to drop nearly 10% to $85.90 per barrel and allowed Bitcoin to break above the $76,000-$78,000 resistance zone that had capped rallies since early February. The move was exacerbated by a heavily shorted market, where funding rates on bitcoin perpetuals were negative, meaning shorts were paying a premium to longs.
The breakout was short-lived. By Saturday evening in Asia, Bitcoin had retreated to around $76,091, up only 0.8% on the day, after Iran broadcast that the Strait was closed again to maritime traffic. Reports from tanker owners indicated vessels received Iranian radio transmissions shutting the waterway, with one supertanker reporting gunfire. The Iranian state news agency Nour stated the strait had returned to "strict management and control by the armed forces" in response to a perceived U.S. blockade.
This pattern of geopolitical headlines driving rapid price swings has become familiar, with initial rally catalysts often reversed before a breakout can consolidate. Meanwhile, MicroStrategy's stock surged in tandem with Bitcoin's initial breakout, as the company is widely viewed as a leveraged proxy for BTC exposure in public markets.
The article also highlights the growing narrative for crypto payment solutions like Remittix amid such instability, arguing that geopolitical friction underscores the need for faster, cheaper cross-border settlement. Remittix, which has raised $30 million in a presale, focuses on converting crypto to fiat for direct bank deposit.
