Bitcoin’s upward momentum appeared to falter early Wednesday, despite a strong rally in Wall Street tech stocks overnight, fueled by expectations of positive earnings from AI leader Nvidia (NVDA).
At press time, the leading cryptocurrency by market capitalization hovered around $108,900, signaling a potential downward breach of the trendline that has defined its ascent since the early April lows, based on data from Coingecko.
Traders typically view bullish trendlines as zones of heightened demand, so when a trendline breaks, they often interpret it as a signal of an impending reversal and a possible downward trajectory.
Despite a wave of encouraging developments, including Circle’s intention to pursue an IPO and Trump Media’s $2.5 billion bitcoin acquisition plan, prices have struggled to register meaningful advances this week.
According to on-chain data, major investors have recently started distributing coins, increasing overall selling pressure in the market. Glassnode reported on X that the largest holders, specifically the >10K BTC cohort, shifted to net distribution (~0.3) as of May 26. However, the firm noted that the broader market still remains in an accumulation phase.
Market Eyes Fed Minutes and Nvidia Earnings for Key Economic Signals
The focus will later shift on Wednesday to the release of minutes from the Federal Reserve’s May meeting, providing an in-depth look into the committee’s monetary policy outlook and possibly revealing signals regarding upcoming interest rate decisions.
The Federal Reserve chose to keep the benchmark interest rate steady earlier this month. Chairman Jerome Powell directly cited President Donald Trump’s tariff conflict as a contributor to inflation and economic unpredictability. He also invoked the term “stagflation” during his remarks.
The minutes will likely restate those concerns; however, because Trump recently postponed tariffs, market participants may largely ignore any aggressive policy signals.
At the same time, the upcoming earnings announcement from AI giant Nvidia could influence markets—especially digital assets—given the strong historical correlation between NVDA and BTC.
Strong earnings and revenue growth are anticipated to be reported by the firm, fueled by investments in AI infrastructure. Attention will remain on its perspective regarding AI demand and developments in China, especially in light of the ongoing chip export restrictions.
XRP Maintains Crucial Support Level Amid DeFi Momentum
During overnight trading, payments-focused XRP held the 200-day simple moving average (SMA) as discussions about XRPFi—decentralized finance on the XRP Ledger—gained traction across social media platforms.
Strobe Finance, which uses Ripple’s EVM sidechain to build a DeFi ecosystem on the XRP Ledger, noted that large quantities of XRO remain unused and could be allocated to DeFi protocols to generate additional yield.
According to Strobe’s blog post, research conducted by the Ripple community indicates that more than 4 million XRPL wallets remain inactive, collectively holding around US$2.15 billion in XRP—substantially more than the 1.7 million active wallets. This unutilized capital reveals a vast, addressable market that attractive DeFi offerings could activate.
The chart indicates that XRP remains in a bullish zone, maintaining levels above both the Ichimoku cloud and the 200-day Simple Moving Average (SMA). Since early April, this average has consistently served as a key support level and a focal point for buyer interest.
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