The cryptocurrency market is experiencing a mix of stability and volatility, with bitcoin remaining relatively unchanged while other major cryptocurrencies have given back their gains. On Wednesday, during Asian trading hours, bitcoin reached nearly $77,000, representing a 0.1% increase over the past 24 hours and a 0.8% decrease over the week. This stability occurred despite Brent crude oil prices exceeding $111 per barrel, following a Wall Street Journal report that President Donald Trump had instructed his aides to prepare for an extended US naval blockade of the Strait of Hormuz. In response to the situation, Iran claimed to be in a state of collapse, according to Trump's statement on Truth Social.
Tehran has signaled its potential acceptance of an interim deal to reopen the strait if Washington lifts its blockade of 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. The only exception was dogecoin, which increased by 5.5% to $0.1016 over the week.
As a result, bitcoin's market dominance has slowly begun to rise, a common occurrence when macroeconomic stress leads to capital rotation into the largest asset. Zaheer Ebtikar, founder of Split Research, noted that bitcoin's relative calmness indicates a shift in market structure. He stated that the supply overhang has dissipated, and sellers who were spooked by macro shifts or quantum fears have already exited the market, resulting in a much thinner sell-side.
Ebtikar added that bitcoin is less sensitive to regulatory noise or central bank policy than people think, and its sensitivity is primarily a function of wider volatility. With the current quieter trading range, there is no immediate rush for the exits.
Technically, analysts at Bitget identified $75,000 as the critical level where the upward range that has held since late March breaks, potentially leading to further downside. A reversal back toward $80,000 from current levels would maintain the rally structure intact and set up a retest of the resistance that has rejected bitcoin every attempt since February. The Fed's rate decision is scheduled for later on Wednesday, followed by the ECB's decision on Thursday.
The US equity market sold off on Tuesday due to growing skepticism about the payoff from artificial intelligence capital expenditure, with Nasdaq 100 futures recovering 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 watching whether bitcoin's apparent supply exhaustion holds against the next macro shock. If Ebtikar's assessment is correct, the seller base that capitulated through March and April is gone, and bitcoin trades on volatility rather than headlines until something forces a fresh leg of selling.