Market watchers are closely eyeing the Federal Reserve’s minutes and Nvidia’s earnings report as potential catalysts for upcoming price action.
Bitcoin’s (BTC) upward momentum showed early signs of weakening on Wednesday, despite a strong rally in U.S. tech stocks fueled by optimism around Nvidia’s anticipated earnings. The leading cryptocurrency was trading around $108,900 at the time of reporting, flirting with a critical trendline that has supported its rise since early April, according to Coingecko data.
Trendlines are key technical indicators representing areas of strong buying interest. A breach below such a line often signals a potential trend reversal and could mark the beginning of a decline.
This week, Bitcoin has struggled to gain traction despite a wave of positive news, including stablecoin issuer Circle’s IPO filing plans and Trump Media’s announcement of a $2.5 billion fundraising effort aimed at acquiring bitcoin.
On-chain data highlights increased selling pressure from large holders. Glassnode reported on X that, “As of May 26, wallets holding over 10,000 BTC have shifted to net distribution (~0.3), indicating a meaningful change in behavior among major investors.” Nonetheless, the broader market still appears to be in an accumulation phase.
Eyes on the Fed Minutes and Nvidia Earnings
The focus later Wednesday will be on the release of the Federal Reserve’s May meeting minutes, expected to shed light on the central bank’s monetary policy stance and hint at future interest rate moves.
The Fed maintained its benchmark rate earlier this month, with Chair Jerome Powell attributing inflation and economic uncertainty largely to President Trump’s tariff disputes. Powell even mentioned the risk of “stagflation.” The minutes are anticipated to echo these concerns, though recent tariff postponements might lessen the impact of any hawkish language.
Meanwhile, Nvidia’s earnings report could significantly influence markets, especially cryptocurrencies, given the historical correlation between Bitcoin and Nvidia stock. The AI and chip giant is forecasted to post robust earnings growth, driven by rising demand for AI infrastructure. Investors will be watching closely for commentary on AI trends and China, particularly amid export restrictions on chips.
XRP Holds Critical Support Level
In other news, XRP maintained support above its 200-day simple moving average during overnight trading. Interest is growing around XRPFi, Ripple Ledger’s decentralized finance ecosystem.
Strobe Finance, a DeFi platform built on Ripple’s EVM sidechain, noted that large quantities of XRP remain dormant but could be unlocked to generate yield. According to a recent blog post, “Ripple’s community research indicates over 4 million inactive XRPL wallets hold approximately $2.15 billion in XRP, compared to 1.7 million active wallets. This dormant capital represents a significant opportunity for DeFi growth on the XRP Ledger.”
