The cryptocurrency market is witnessing a period of stagnation for Bitcoin, with minimal movement, while other assets around it are experiencing fluctuations. 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 tight trading range persisted despite Brent crude oil prices surpassing $111 per barrel, sparked 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.
Iran has described its current state as one of "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 of Iranian ports. Over the week, Ether dropped 2.6% to $2,310, XRP fell 3.8% to $1.39, Solana lost 3.2% to $84.57, and BNB shed 2.3% to $625.
In contrast, dogecoin experienced a 5.5% increase to $0.1016, making it the only top-10 token outside stablecoins to exhibit growth over the seven-day period. As a result, Bitcoin's market dominance is gradually increasing, a trend that often occurs when macroeconomic stress arises and capital flows into the largest asset.
Zaheer Ebtikar, founder of Split Research, noted in a statement that Bitcoin's relative stability is indicative of a shift in market structure. "The supply overhang has finally been absorbed, 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," he stated in an email to CoinDesk.
"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," Ebtikar added. From a technical perspective, analysts at Bitget identified $75,000 as the critical level that, if breached, could lead to a breakdown of the upward range that has held since late March, potentially paving the way for further declines.
A reversal toward $80,000 from current levels would maintain the rally structure intact and set the stage for a retest of the resistance that has rejected Bitcoin's attempts since February. The Fed is scheduled to announce its rate decision later on Wednesday, followed by the ECB on Thursday, while the US equity market experienced a sell-off on Tuesday due to growing skepticism about the returns on artificial intelligence capital expenditure, with Nasdaq 100 futures rebounding 0.4% in Asian hours.
Brent crude prices continued to fluctuate between gains and losses but remained elevated near $111, driven by the blockade reports, thereby putting renewed pressure on inflation expectations ahead of the central bank decisions. Traders may be watching to see if Bitcoin's apparent supply exhaustion holds up against the next macro shock. If Ebtikar's assessment is correct, the seller base that capitulated through March and April is gone, and Bitcoin's price movements will be driven by volatility rather than headlines until something triggers a fresh wave of selling. If the assessment is incorrect, the $75,000 level may be tested quickly, and the range break flagged by Bitget could play out as expected.