Bitcoin climbs to $77,000 in anticipation of Fed announcement as Trump prepares for extended Hormuz blockade.

Bitcoin remains nearly unchanged as other major cryptocurrencies retract gains and oil prices rise above $111 following reports of a prolonged U.S. naval blockade against Iran.

What to know:

• Bitcoin is trading in a narrow range just below $77,000 despite rising oil prices and geopolitical tensions due to a potential prolonged U.S. naval blockade of the Strait of Hormuz.
• Prominent altcoins such as ether, XRP, Solana, and BNB have experienced declines over the past week, whereas dogecoin is the only top-10 non-stablecoin token to show gains, enhancing bitcoin’s market dominance.
• Analysts suggest that bitcoin’s subdued response indicates supply exhaustion and reduced sensitivity to regulatory and central bank developments, with $75,000 identified as crucial downside support and a movement back towards $80,000 necessary to maintain the current rally structure.

Bitcoin remains static while the surrounding environment shifts.

The leading cryptocurrency hovered just under $77,000 on Wednesday during Asian trading hours, gaining only 0.1% in the last 24 hours and down 0.8% over the week, maintaining a narrow range even as Brent crude exceeded $111 a barrel due to a Wall Street Journal report stating that President Donald Trump instructed aides to prepare for an extended U.S. naval blockade of the Strait of Hormuz.

Iran has declared the nation is in a “State of Collapse,” Trump stated on Truth Social Tuesday, whereas Tehran has indicated it may agree to an interim arrangement to reopen the strait if Washington lifts its blockade of Iranian ports.

Ether declined by 2.6% over the week to $2,310. XRP dropped 3.8% to $1.39. Solana decreased by 3.2% to $84.57. BNB fell 2.3% to $625. The exception was dogecoin, which rose 5.5% over the week to $0.1016, being the only top-10 token apart from stablecoins to record gains in the past seven days.

Consequently, bitcoin’s market dominance is gradually increasing, which is a typical occurrence when macroeconomic stress arises and capital shifts to the largest asset.

Zaheer Ebtikar, founder of Split Research, noted in a communication that bitcoin’s relative stability signifies a transformation in market structure.

“The supply overhang has finally diminished, and the sellers who were alarmed by macroeconomic changes or market fears have already exited, leaving the market considerably thinner on the sell-side compared to just a few months ago,” he conveyed to CoinDesk via email.

“Bitcoin is significantly less responsive to regulatory news or central bank policies than many assume. Its sensitivity is primarily a function of broader volatility, and since we are currently in a quieter trading range, there is no immediate urgency to exit,” Ebtikar further explained.

The technical levels have become more defined. Analysts from Bitget highlighted $75,000 as the threshold where the upward range that has persisted since late March could break, with a clean loss potentially paving the way for further declines.

A rebound towards $80,000 from existing levels would preserve the rally structure and set up a retest of the resistance that has thwarted bitcoin in every attempt since February.

The Fed is set to announce its rate decision later on Wednesday, followed by the ECB on Thursday, while the U.S. equity market experienced a sell-off on Tuesday due to increasing skepticism regarding the returns from artificial intelligence capital expenditures, with Nasdaq 100 futures recovering 0.4% during Asian trading hours.

Brent crude experienced fluctuations between gains and losses but remained elevated near $111 following the blockade reports, intensifying inflation expectations ahead of the central bank announcements.

Traders may observe whether bitcoin’s apparent supply exhaustion withstands the next macroeconomic shock. If Ebtikar’s interpretation is accurate, the seller base that capitulated through March and April has vanished, and bitcoin is trading on volatility rather than headlines until something triggers a new wave of selling. Conversely, if this interpretation is incorrect, $75,000 may be tested swiftly, and the range break flagged by Bitget could materialize as expected.