Bitcoin Uptrend at Risk Ahead of Nvidia Earnings, Fed Minutes; XRP Holds Key Support Amid XRPFi Narrative
Bitcoin’s upward momentum faltered early Wednesday, despite a surge in Wall Street tech stocks fueled by anticipation of Nvidia’s (NVDA) earnings report. Trading near $108,900, Bitcoin flirted with a breakdown below a key trendline supporting its uptrend since early April, signaling a potential reversal. This weakness persists despite positive news, including Circle’s planned IPO and Trump Media’s Bitcoin investment plans.
On-chain data reveals large investors, specifically those holding over 10,000 BTC, are now net distributors, indicating selling pressure. However, Glassnode notes the market remains in an accumulation phase overall.
The Federal Reserve’s May meeting minutes, released later Wednesday, will provide insights into monetary policy and future interest rate decisions. While the Fed left rates unchanged earlier this month, Chairman Powell cited President Trump’s tariff war as a source of inflation. The minutes may reiterate this stance, though recent tariff delays could lessen market sensitivity to hawkish messaging.
Nvidia’s earnings announcement is also crucial, given the historical correlation between Bitcoin and NVDA. Strong earnings and revenue growth, driven by AI infrastructure investments, are anticipated. Investor focus will be on the company’s outlook for AI demand, particularly in China, considering export restrictions.
XRP, meanwhile, found support at its 200-day simple moving average (SMA) amid growing interest in XRPFi (decentralized finance on the XRP Ledger). Strobe Finance, a DeFi platform on Ripple’s EVM sidechain, highlights a substantial amount of idle XRP. Over 4 million inactive XRPL wallets hold approximately $2.15 billion in XRP, representing a significant untapped market for DeFi opportunities. Technically, XRP’s chart shows it trading above the Ichimoku cloud and the 200-day SMA, a level that has acted as strong support since early April. The situation suggests potential for further upward movement, contingent on broader market sentiment and regulatory developments.
