The cryptocurrency market is witnessing a mixed trend, with Bitcoin showing minimal movement. On Wednesday, during Asian 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 occurred despite Brent crude surpassing $111 a barrel, triggered by a Wall Street Journal report stating that President Donald Trump has instructed aides to prepare for an extended US naval blockade of the Strait of Hormuz. Iran has claimed to be in a state of economic collapse, according to Trump's statement on Truth Social, while Tehran has indicated it may consider an interim agreement to reopen the strait if the US lifts its blockade on Iranian ports.
Other major cryptocurrencies 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. However, Dogecoin bucked the trend with a 5.5% increase to $0.1016, making it the only top-10 token outside stablecoins to show gains over the week. As a result, Bitcoin's market dominance is slowly increasing, a common occurrence when macroeconomic stress leads to capital flowing into the largest asset. Zaheer Ebtikar, founder of Split Research, noted that Bitcoin's relative calm suggests a shift in market structure.
'The supply overhang has been depleted, and 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 a few months ago,' he stated. 'Bitcoin is 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 crucial level, where a break in the upward range that has held since late March could lead to further downside.
A reversal towards $80,000 would maintain the rally structure and set up a retest of the resistance that has rejected Bitcoin since February. The Fed's rate decision, scheduled for later on Wednesday, and the ECB's decision on Thursday, will be closely watched.
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 since recovered 0.4% in Asian hours. Brent crude prices remain elevated near $111, putting renewed pressure on inflation expectations ahead of the central bank decisions. Traders will be monitoring whether 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's price will be driven by volatility rather than headlines until a fresh wave of selling is triggered.