The cryptocurrency market is witnessing a mixed trend, with Bitcoin remaining relatively stable. On Wednesday, during Asian trading hours, Bitcoin hovered just below $77,000, marking a 0.1% increase over 24 hours and a 0.8% decrease over the week. This stability is notable, given that Brent crude oil surpassed $111 per barrel following a Wall Street Journal report stating that President Donald Trump instructed his aides to prepare for an extended US naval blockade of the Strait of Hormuz. In response to the situation, Iran has claimed to be in a 'State of Collapse,' according to Trump's statement on Truth Social.
Tehran, however, has indicated that it might accept an interim deal to reopen the strait if the US lifts its blockade of Iranian ports. Other major cryptocurrencies, such as Ether, XRP, Solana, and BNB, have experienced declines, with Ether dropping 2.6% to $2,310, XRP falling 3.8% to $1.39, Solana losing 3.2% to $84.57, and BNB shedding 2.3% to $625.
In contrast, dogecoin saw a 5.5% increase to $0.1016, making it the only top-10 token outside stablecoins to experience growth over the past week. As a result, Bitcoin's market dominance is slowly increasing, a trend that often occurs when macroeconomic stress arises and capital flows into the largest asset. Zaheer Ebtikar, founder of Split Research, attributes Bitcoin's relative calm to a shift in market structure. 'The supply overhang has finally dried up, and the sellers who were spooked by macro shifts or quantum fears have already exited, leaving the market much thinner on the sell-side than it was just a few months ago,' Ebtikar stated in a note.
'Bitcoin is far less sensitive to regulatory noise or central bank policy than people think. Its sensitivity is purely a function of wider volatility, and since we're currently in a quieter trading range, there's no immediate rush for the exits.' From a technical perspective, analysts at Bitget have identified $75,000 as a critical level, where the upward range that has held since late March could break, potentially leading to further downside. A reversal back toward $80,000 from current levels would maintain the rally structure and set up a retest of the resistance that has rejected Bitcoin's attempts since February. The Federal Reserve is scheduled to announce its rate decision later on Wednesday, followed by the European Central Bank on Thursday.
The US equity market experienced a sell-off on Tuesday due to growing skepticism about the payoff from artificial intelligence capital expenditure, although Nasdaq 100 futures have recovered 0.4% in Asian hours. Brent crude oil prices have fluctuated between gains and losses but remain elevated near $111, 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 macro shock.
If Ebtikar's assessment is correct, the seller base that capitulated in March and April is gone, and Bitcoin will trade based on volatility rather than headlines until a new selling wave is triggered. However, if the assessment is incorrect, $75,000 may be tested quickly, and the range break flagged by Bitget could play out as anticipated.