When Geopolitics Meets Bitcoin: Strait of Hormuz Blockade Triggers the Short Squeeze Nobody Saw Coming

Bitcoin pushed toward the $75,000 level on Monday, April 13, 2026, as traders scrambled to cover short positions following President Trump's order to blockade the Strait of Hormuz. The price climbed from a morning low of $70,741 to intraday highs above $74,900 within hours. Apparently, nothing says "risk-on" quite like watching oil tankers play musical chairs in the world's most congested shipping lane.

Millions in short positions were liquidated as buyers stepped in at support near $70,000. Funding rates had turned negative in the days prior, a signal that short positioning had grown crowded heading into the weekend. For those who thought "short the range" was a solid plan, Monday morning delivered a harsh reminder that bitcoin has a sense of humor about consensus trades.

Trump ordered the Strait of Hormuz closure 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. Apparently, when traditional markets get queasy, bitcoin suddenly looks like the less crazy gamble. Progress, of a sort.

The move tested the upper boundary of bitcoin's two-month consolidation range, roughly between $65,000 and $75,000 since February. This range followed bitcoin's all-time high above $126,000 in October 2025. Yes, $126,000. We remember it fondly, like that vacation you took before your bank account met reality.

Spot bitcoin ETFs have seen renewed inflows during March and April, providing demand beneath the leverage-driven moves. Institutional buying through ETF vehicles has helped support near $68,000 to $70,000 across multiple retests. The institutions are back, baby. Or at least they're pretending to be, which in crypto counts as the same thing.

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 has tended to lift $BTC within days. The Fed: now with 47% more uncertainty about everything,