The cryptocurrency market is witnessing a mixed trend, with Bitcoin showing minimal movement. On Wednesday, during Asian trading hours, Bitcoin hovered just below $77,000, marking a 0.1% increase over 24 hours and a 0.8% decline over the week. This stability is notable, given that Brent crude oil prices have exceeded $111 per barrel following a Wall Street Journal report that President Donald Trump has instructed 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. Meanwhile, Tehran has indicated that it may consider an interim agreement 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 has seen 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 trend that often occurs when macroeconomic stress leads to capital flowing into the largest asset. Zaheer Ebtikar, founder of Split Research, attributes Bitcoin's relative calm to a shift in market structure, stating that the supply overhang has dissipated and sellers who were previously spooked by macro shifts or quantum fears have already exited the market.
According to Ebtikar, '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 a break in the upward range that has held since late March could potentially lead to further downside.
A reversal towards $80,000, on the other hand, would maintain the rally structure and set up a retest of the resistance that has rejected Bitcoin's attempts since February. With the Fed's rate decision scheduled for later on Wednesday, followed by the ECB's decision on Thursday, and the US equity market experiencing a sell-off on Tuesday due to growing skepticism about artificial intelligence capital expenditure, traders will be closely watching the market's reaction.
The price of Brent crude has fluctuated between gains and losses but remains elevated near $111, putting renewed pressure on inflation expectations ahead of the central bank decisions. As the market awaits the next macro shock, traders will be monitoring whether Bitcoin's apparent supply exhaustion will hold, and 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 fresh wave of selling is triggered.