Short Sellers Get Absolutely Demolished as Strait Drama Sends Bitcoin Blasting Past $74K

Bitcoin made its triumphant march toward the $75,000 level on Monday, April 13, as traders scrambled to cover short positions following President Trump's order to blockade the Strait of Hormuz. Because nothing says "safe haven asset" quite like watching geopolitical tensions unfold while your short position gets liquidated in real-time.

The price climbed from a morning low of $70,741 to intraday highs above $74,900 within hours. Millions in short positions were liquidated as buyers stepped in at support near $70,000. Funding rates had turned negative in the days prior, signaling that short positioning had grown crowded heading into the weekend. Apparently "short the news" seemed like a great idea until it absolutely wasn't.

The blockade order came after ceasefire talks between the U.S. and Iran collapsed over the weekend. The Strait is a critical passage for global oil shipments. The news initially pressured risk assets before traders shifted toward bitcoin and other hedges. Because when countries start threatening to close shipping lanes, the rational response is apparently to buy the orange coin.

The move tested the upper boundary of bitcoin's two-month consolidation range, roughly between $65,000 and $75,000 since February. That range followed bitcoin's all-time high above $126,000 in October 2025. We've been waiting for a breakout so long we forgot what the top of the range even looked like.

Spot bitcoin ETFs have seen renewed inflows during March and April, providing demand beneath the leverage-driven moves. Institutional buying through ETF vehicles is cited as one reason support near $68,000 to $70,000 has held across multiple retests. Meanwhile, retail traders are wondering if their spot ETFs will ever see the legendary 2021-style gains.

Broader macro conditions remain a headwind. Rising oil prices tied to Middle East tensions have reinforced inflation concerns, which could push back Federal Reserve rate cuts. Any easing of geopolitical pressure or shift in Fed expectations tends to lift $BTC within days. The Fed's relationship with crypto can best be described as "complicated, but always watching."

Earlier in April, bitcoin posted a gain near $70,000 on reports of a potential U.S.-Iran ceasefire before the weekend breakdown reversed that momentum. Hope you enjoyed that brief moment of peace. It lasted about as long as a tweet from a crypto influencer telling you to "DYOR."

April has historically been a positive month for bitcoin. Since 2013, bitcoin has closed April higher roughly 69% of the time. The 2026 edition has been inconsistent, weighed down by persistent macro headwinds. So far in Q2 2026, bitcoin is