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.
Bullish trendlines are typically viewed as zones of heightened demand, so when one is breached, it is generally interpreted as a signal of an impending reversal and the potential onset of a 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, distribution of coins has recently been initiated by major investors, increasing the overall selling pressure in the market. As stated by Glassnode on X, a significant shift in positioning has been observed among the largest holders, with the >10K BTC cohort transitioning to net distribution (~0.3) as of May 26. However, it was noted by the firm 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 are expected to restate those concerns; however, due to Trump’s recent postponement of tariffs, market participants may largely overlook any aggressive policy signals.
At the same time, markets—especially digital assets—could be influenced by the upcoming earnings announcement from AI giant Nvidia, as a strong historical correlation has been observed 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
The 200-day simple moving average (SMA) was held by payments-focused XRP during overnight trading, as discussions surrounding XRPFi—decentralized finance on the XRP Ledger—gained traction across social media platforms.
Strobe Finance, utilizing Ripple’s EVM sidechain to establish a DeFi ecosystem on the XRP Ledger, noted that substantial quantities of XRO remain unused and have the potential to be allocated within DeFi protocols to generate extra 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 highlights a vast, addressable market that could be activated through attractive DeFi offerings.
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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