Bitcoin (BTC) Uptrend Faces Challenges Before Nvidia (NVDA) Earnings and Fed Minutes; XRP Maintains Crucial Support Amid XRPFi Discussion

Bitcoin’s

upward movement appeared to falter early on Wednesday, despite a rally in technology stocks on Wall Street that sparked optimism for positive earnings from Nvidia (NVDA), an AI leader in the market.

The top digital currency was hovering around $108,900 at the time of reporting, inching closer to a critical trendline that signifies the uptrend from the lows observed in early April, based on Coingecko’s data.

Typically, bullish trendlines signify strong demand levels, so a breach below such a line often suggests a potential market reversal and the onset of a decline.

This week has seen a lack of substantial price increases for Bitcoin, despite a series of optimistic news events, such as the stablecoin provider Circle’s announcement of an upcoming IPO and plans by Trump Media to acquire $2.5 billion worth of Bitcoin.

Market data indicates that large players have started selling off their Bitcoin holdings, which has contributed to increased selling pressure. It was noted that the cohort holding more than 10,000 BTC has shifted to net distribution, reflecting a change in strategy among major holders. However, the overall market still appears to be accumulating assets.

Attention on Fed minutes and Nvidia’s earnings

Attention will soon turn to the minutes from the Federal Reserve’s May meeting, which will provide valuable insights into the committee’s perspective on monetary policy and hints regarding future interest rate regulations.

The central bank opted to maintain the current benchmark interest rate earlier this month, with Chairman Jerome Powell attributing inflationary pressures and uncertainty largely to the tariff disputes initiated by President Donald Trump. Powell also mentioned the term “stagflation” during discussions.

While the minutes may reinforce these themes, the recent postponement of tariffs by Trump may mean that any hawkish indications will be less impactful on market behavior.

On a related note, Nvidia’s upcoming earnings release could also sway market dynamics, particularly in the cryptocurrency sector, due to the historically noted correlation between Bitcoin prices and Nvidia’s performance.

The company is anticipated to report significant revenue and earnings growth, fueled by its investments in artificial intelligence. Observers are keen to hear insights regarding AI demand and the implications of restrictions on chip exports to China.

XRP maintains crucial support levels

XRP, focused on payment solutions, successfully held above its 200-day simple moving average during recent trading sessions, amid increasing discussions on social media regarding decentralized finance initiatives on the XRP Ledger.

Strobe Finance, a firm utilizing Ripple’s smart contract capabilities on its EVM sidechain, highlighted that a significant portion of XRP is currently inactive and could be deployed in decentralized finance for further yield generation.

Research from the Ripple community indicated a considerable inactive user base: over 4 million dormant XRPL wallets hold approximately $2.15 billion in XRP, contrasting with 1.7 million active wallets. This inactive capital denotes a substantial market potential that could be tapped into through attractive DeFi initiatives, as noted by Strobe in their blog.

XRP’s trading chart reflects a bullish pattern, sitting comfortably above the Ichimoku cloud and the critical 200-day simple moving average, which has historically shown strong support for buyers since early April.