Bitcoin Nears Key Support as Reversal Signs Emerge; Fed Minutes and Nvidia Earnings in Focus
Bitcoin's recent uptrend is showing signs of fatigue, with the cryptocurrency hovering near a critical trendline support level. At the same time, investors are closely watching key macro and tech events that could shape market sentiment—most notably, the release of the Federal Reserve’s meeting minutes and Nvidia’s earnings report.
Bitcoin Eyes Trendline Breakdown
As of early Wednesday, Bitcoin (BTC) was trading around $108,900, signaling a potential break below a trendline that has supported its rally from the early April lows. A breach of this bullish trendline would suggest waning demand and could trigger a reversal in price momentum.
Adding to the bearish undertone, on-chain data indicates that large holders have begun distributing coins. According to analytics firm Glassnode, wallets holding over 10,000 BTC have shifted to net distribution as of May 26—marking a notable change in positioning. Despite this, Glassnode noted that the broader market still remains in an accumulation phase.
Key Market Drivers: Fed and Nvidia
Investors are turning their attention to the minutes from the Federal Reserve’s May meeting, set to be released later Wednesday. These minutes will provide deeper insight into policymakers' views on inflation and interest rates. While the Fed kept rates steady earlier this month, Chair Jerome Powell cited inflationary pressures—partly driven by former President Trump’s tariff policies—and even mentioned the term “stagflation.”
However, given the recent delay in new tariff implementations, markets may discount overly hawkish commentary.
Meanwhile, Nvidia (NVDA) is expected to post strong earnings and revenue growth, fueled by ongoing investments in artificial intelligence infrastructure. Nvidia’s performance is especially relevant for crypto markets, as BTC has historically shown a positive correlation with NVDA’s stock. Market watchers will be particularly interested in Nvidia’s commentary on AI demand and its business outlook amid export restrictions to China.
XRP Holds Strong Amid DeFi Potential
XRP has maintained its position above the 200-day simple moving average (SMA), reinforcing its bullish technical posture. The token is trading within the Ichimoku cloud and above key support levels, which have consistently attracted buyers since early April.
Excitement is building around the development of DeFi (decentralized finance) applications on the XRP Ledger. Strobe Finance, which utilizes Ripple’s EVM-compatible sidechain, has highlighted a large pool of idle XRP that could be activated for yield-generating DeFi strategies.
According to Ripple’s internal research, more than 4 million inactive XRP Ledger wallets collectively hold approximately $2.15 billion worth of XRP—compared to just 1.7 million active wallets. This dormant capital presents a significant opportunity for growth in the XRP ecosystem.
