US Blockade In Strait Of Hormuz Wipes Over $440M Shorts As Bitcoin Taps $75K
- Bitcoin underwent a short squeeze at $75K as the US gained control over the Strait of Hormuz.
- The crypto market wiped out more than $440 million in leveraged short positions following the sudden surge of the premier digital asset.
Bitcoin (BTC) recently cleared several hurdles at key resistance levels on its way to $75K per coin. The move wiped out over $440 million in short positions, but doubts persist as to whether the premier crypto asset is already out of its bear cycle.
Crypto Market Liquidations (Source: Coinglass)
The significant price action coincided with ongoing geopolitical developments in the Middle East, as the US offered Iran another chance to return to the negotiating table.
Bitcoin Short Squeeze
Bitcoin staged more than a 6% rally in the last 24 hours from a $70,588.52 low to a $74,933.51 high. It led to the asset recapturing the $1.5 trillion market cap from its 20.01 million units in circulation.
The event resulted in a massive liquidation of short positions, as many traders leveraged their bets against BTC amid the prevailing “Extreme Fear” sentiment, driven by FUD (Fear, Doubt, Uncertainty) in macro narratives. Additionally, the low liquidity exacerbated price swings, prompting forced buy-ins to cover shorts.
According to analysts’ near-term outlook, BTC holding up the $73K Fibonacci support and sustaining its momentum above $75K positions it for a climb to $77K. On the other hand, a rejection could push it back into the consolidated range between $65K and $70K.
BTC is Not Yet Out of the Structurally Bearish Trend
Ali Martinez, a renowned technical analyst in the crypto space, warns that Bitcoin has not yet exhausted its selling pressure. He claimed BTC is still in its “extreme pain zone”, as its MVRV (Market Value to Realized Value) at the 0.8 pricing band indicates seller exhaustion at $43K.
The trend means that weaker holders, colloquially called “paper hands” by the crypto community, have left the scene, leaving only high-conviction or “diamond hands” behind. Only then would Bitcoin be able to build significant momentum toward a bullish reversal.
Peter Schiff, the Chair of Schiffgold and a resident Bitcoin critic, also cautioned investors about the likely dead-cat bounce. He advised them to ditch their BTC while it’s on a relief rally and buy gold and silver instead.
Primary Catalyst of the Bitcoin Short Squeeze
Bitcoin’s rise by nearly $5K in the last 24 hours came in response to the mainstream media’s confirmation that the US has successfully blockaded the Strait of Hormuz, a vital route for 20% to 25% of the global seaborne oil and Liquefied Natural Gas (LNG).
The disruption reinforced the country’s leverage at the negotiating table, strengthening its ability to present proposals from a position of power rather than on equal terms or even at a disadvantage, as in the earlier stalemate with Iran. US President Donald Trump claimed Iranian officials have called the White House to “work a deal,” while Pakistan again presented itself as the host of the next round of talks in Islamabad.
The post US Blockade In Strait Of Hormuz Wipes Over $440M Shorts As Bitcoin Taps $75K appeared first on Blockzeit.
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