Bitcoin Holds Near $77K as Oil Surges and Fed Decision Looms Amid Hormuz Tensions

Bitcoin hovered near $77,000 on Wednesday during Asian trading, showing minimal movement even as global markets reacted sharply to geopolitical and macroeconomic pressures. The asset was up just 0.1% in 24 hours and down 0.8% on the week, maintaining a narrow range while other markets weakened.

Oil Surge and Geopolitical Risk Drive Market Volatility

Oil prices surged above $110 per barrel following reports that the U.S. administration under President Donald Trump is preparing for an extended naval blockade of the Strait of Hormuz, a critical global oil transit route. Iran reportedly described the situation as a “State of Collapse,” while signaling potential willingness for an interim deal to ease tensions.

The geopolitical uncertainty has added inflationary pressure ahead of major central bank events, including the upcoming U.S. Federal Reserve rate decision and the European Central Bank announcement.

Altcoins Decline as Bitcoin Dominance Increases

Major cryptocurrencies underperformed during the week:

• Ethereum fell 2.6% to $2,310
• XRP dropped 3.8% to $1.39
• Solana declined 3.2% to $84.57

The mixed performance pushed Bitcoin’s market dominance higher as capital rotated toward the largest digital asset during periods of macro stress.

Analysts Point to Supply Exhaustion and Key Price Levels

Bitcoin’s stability reflects reduced selling pressure, noting that weaker holders have largely exited the market. He added that Bitcoin is now less sensitive to regulatory or central bank signals and more driven by overall volatility conditions.

Technical analysts identified $75,000 as a critical support level. A breakdown below it could signal a deeper correction, while a recovery toward $80,000 would preserve the current bullish structure and maintain resistance testing trends seen since February.

Macro Forces Shape Short-Term Direction

Equity markets also showed weakness, with tech stocks selling off amid doubts over artificial intelligence investment returns. Meanwhile, elevated oil prices continue to influence inflation expectations ahead of central bank decisions.

Traders are now watching whether Bitcoin’s current stability reflects genuine demand strength or a temporary pause before renewed volatility driven by global economic and geopolitical shocks.