Bitcoin Falls to $75K After Strait of Hormuz Closure

Bitcoin fell to about $75,000 on Sunday after Iran closed the Strait of Hormuz, erasing gains from the prior session and pressuring crypto markets ahead of the weekly close.

The price had reached roughly $78,400 on Friday before retracing as weekend developments between the United States and Iran produced mixed signals. The strait’s closure returned focus to oil markets; reports of a temporary ceasefire had pushed WTI crude briefly below $80 per barrel, and traders monitored whether interrupted shipping would lift oil futures.

A trading newsletter wrote on social media, “We expect an eventful Sunday ahead.” A market analytics account wrote, “Sentiment is overwhelmingly bullish at the moment, but that could change with one Tweet in the coming days. Know your invalidations.”

A crypto market data provider recorded about $260 million in liquidations across the crypto market over the previous 24 hours, with long positions taking the bulk of the losses.

On technicals, the 21-week exponential moving average near $78,900 capped gains over the weekend. One analyst wrote that Bitcoin was rejecting that moving average and that a weekly close at current levels could lead to a retest of support around $73,000. A futures trader flagged a potential gap in CME Group’s Bitcoin futures that may attract price when futures reopen.

Traders reported thin volume and order flow in parts of the weekend session, which exaggerates price moves. Market participants noted that further regional escalation or signs of de-escalation would alter oil and risk markets and could affect cryptocurrency prices.

Bitcoin had been climbing through March and April to multi-week highs as investors weighed macro factors and institutional demand. Technical indicators, liquidation data and futures gaps were among the items traders monitored going into the weekly close.