The cryptocurrency market is witnessing a mixed trend, with Bitcoin showing minimal movement despite significant fluctuations in the prices of other major cryptocurrencies and oil. On Wednesday, during Asian trading hours, Bitcoin briefly touched $77,000, marking a 0.1% increase over 24 hours and a 0.8% decrease over the week. This stability is notable, especially given the surge in Brent crude oil prices to over $111 per barrel, prompted by a Wall Street Journal report that President Donald Trump has instructed his aides to prepare for a prolonged US naval blockade of the Strait of Hormuz. In response to the situation, Iran has described its current state as one of 'collapse,' according to Trump's statements on Truth Social.
Tehran, however, has indicated willingness to consider an interim agreement to reopen the strait if the US lifts its blockade of Iranian ports. Among other major cryptocurrencies, Ether experienced a 2.6% weekly decline to $2,310, while XRP fell 3.8% to $1.39.
Solana and BNB also saw declines of 3.2% and 2.3%, respectively. In contrast, Dogecoin saw a 5.5% increase over the week, reaching $0.1016, making it the only top-10 token, excluding stablecoins, to show gains over the seven-day period. As a result, Bitcoin's market dominance is gradually increasing, a trend often observed during periods of macroeconomic stress when investors shift their capital to the largest asset.
According to Zaheer Ebtikar, founder of Split Research, Bitcoin's relative stability suggests a shift in market structure. 'The oversupply has been absorbed, and sellers who were previously spooked by macro shifts or quantum fears have already exited the market, resulting in a much thinner sell-side than we saw just a few months ago,' Ebtikar noted in an email to CoinDesk.
'Bitcoin is less sensitive to regulatory noise or central bank policies than people think; its sensitivity is primarily driven by broader market volatility, and since we're currently in a quieter trading range, there's no immediate reason for a mass exit.' From a technical perspective, analysts at Bitget have identified $75,000 as a critical level, below which the upward range that has held since late March could break, potentially leading to further downside. On the other hand, a reversal back towards $80,000 from current levels would maintain the rally structure intact and set the stage for a retest of the resistance level that has rejected Bitcoin's attempts to advance since February. The Federal Reserve is set to announce its rate decision later on Wednesday, followed by the European Central Bank's decision on Thursday.
The US equity market experienced a sell-off on Tuesday due to growing skepticism about the returns on artificial intelligence capital expenditure, although Nasdaq 100 futures recovered 0.4% in Asian hours. Brent crude oil prices continued to fluctuate between gains and losses but remained elevated near $111, driven by the blockade reports, thereby increasing pressure on inflation expectations ahead of the central bank decisions. Traders will be watching to see whether Bitcoin's apparent supply exhaustion can withstand the next macroeconomic shock. If Ebtikar's assessment is correct, the seller base that gave up during March and April is no longer a factor, and Bitcoin's price will be driven by volatility rather than headlines until a new selling wave is triggered.
Conversely, if the assessment is incorrect, the $75,000 level could be tested quickly, and the range break flagged by Bitget could unfold as predicted.