The cryptocurrency market is witnessing a mix of trends, with Bitcoin remaining relatively stable at just under $77,000 on Wednesday, while other major cryptocurrencies experience losses and oil prices push past $111 per barrel following reports of a possible extended US naval blockade in the Strait of Hormuz. According to a Wall Street Journal report, President Donald Trump has instructed his aides to prepare for an extended blockade, citing Iran's claimed "State of Collapse" and the potential for an interim deal to reopen the strait if the US lifts its blockade of Iranian ports. Ether has dropped 2.6% over the week to $2,310, XRP fell 3.8% to $1.39, and Solana lost 3.2% to $84.57. In contrast, dogecoin saw a 5.5% increase to $0.1016, making it the only top-10 token outside stablecoins to experience gains over the past week.
As a result, Bitcoin's market dominance is slowly increasing, a common occurrence during times of macroeconomic stress when investors turn to the largest asset. Zaheer Ebtikar, founder of Split Research, notes that Bitcoin's relative stability may indicate a shift in market structure. "The excess supply has been depleted, and sellers who were previously spooked by macroeconomic shifts or quantum concerns have already exited the market, resulting in a thinner sell-side," he explained. "Bitcoin is less sensitive to regulatory changes and central bank policies than perceived.
Its sensitivity is directly tied to broader market volatility, and given the current quieter trading range, there is no immediate need for investors to exit the market," Ebtikar added. From a technical perspective, analysts at Bitget have identified $75,000 as a critical level, where a break in the upward range that has held since late March could potentially lead to further downside.
A reversal towards $80,000 from current levels would maintain the rally structure and set the stage for a retest of the resistance that has rejected Bitcoin's attempts since February. The Fed's rate decision, scheduled for later on Wednesday, and the ECB's decision on Thursday, will be closely watched, particularly as the US equity market experienced a sell-off on Tuesday due to growing skepticism about the benefits of artificial intelligence capital expenditure. Brent crude prices continue to fluctuate, staying near $111, and putting renewed pressure on inflation expectations ahead of the central bank decisions.
Traders will be watching to see if Bitcoin's apparent supply exhaustion can withstand the next macroeconomic shock. If Ebtikar's assessment is correct, the seller base that capitulated in March and April is gone, and Bitcoin's price will be driven by volatility rather than headlines, until a new selling wave is triggered.