Bitcoin Faces Breakdown Risk as Nvidia Earnings and Fed Minutes Loom

What to Know

• Bitcoin’s uptrend is under threat as it nears a key trendline support level.
• Nvidia earnings and the Federal Reserve’s meeting minutes could impact both traditional and crypto markets.
• XRP remains above the 200-day SMA with rising interest in XRP DeFi.

Bitcoin Nears Critical Support Amid Market Jitters

Bitcoin’s  (BTC) strong uptrend from early April is now showing signs of faltering, with the leading cryptocurrency trading close to a critical support level early Wednesday. At press time, Bitcoin hovered around $108,900, according to CoinGecko data, testing a trendline that has defined the recent bullish movement. A breakdown below this level could signal a deeper correction, especially as investor sentiment cools.

Despite several bullish developments—such as Circle’s IPO filing and Trump Media’s plans to purchase $2.5 billion in Bitcoin—BTC has failed to gain upward momentum this week. The lack of price appreciation despite good news suggests a weakening trend, with technical and on-chain indicators flashing caution.

Whales Begin Selling as On-Chain Metrics Shift

Blockchain analytics firm Glassnode reported that wallets holding over 10,000 BTC have begun distributing their coins, reversing a previous accumulation trend. As of May 26, this cohort showed a net distribution score of 0.3, indicating rising selling pressure from large holders. While the overall market still appears to be in accumulation mode, this shift among “whales” adds bearish weight.

All Eyes on Fed Minutes and Nvidia Earnings

Investor focus is turning to two major macro events: the Federal Reserve’s May meeting minutes and Nvidia’s Q2 earnings report, both expected later Wednesday.

The Fed’s minutes will provide deeper insight into the central bank’s stance on interest rates and inflation. In the last meeting, rates were left unchanged, but Chairman Jerome Powell cited inflationary risks tied to trade tariffs and mentioned the word “stagflation,” raising eyebrows. While recent delays in Trump-era tariffs may temper market reaction, hawkish signals could still weigh on risk assets, including crypto.

On the corporate side, Nvidia is set to release what many expect will be blockbuster earnings, fueled by AI-driven demand. With Bitcoin and NVDA often showing positive correlation, a strong report could trigger risk-on sentiment in tech and crypto alike. Investors will be watching Nvidia’s comments on demand growth and challenges related to China exports.

XRP Holds Strong with DeFi Potential on the Rise

While Bitcoin wobbles, XRP has managed to maintain its footing above the 200-day Simple Moving Average and the Ichimoku cloud—two technical levels that have served as reliable support since April.

XRP’s stability coincides with rising excitement around XRPFi, the emerging DeFi ecosystem built on the XRP Ledger’s EVM-compatible sidechain. According to Strobe Finance, over 4 million inactive XRP wallets hold a combined $2.15 billion in tokens. This dormant capital could be unlocked through DeFi platforms offering yield-generating opportunities.

Strobe notes that the large pool of idle XRP suggests a massive addressable market. As XRPFi gains traction, it could increase the token’s utility and long-term investor appeal, further supporting its technical strength.

High Stakes Ahead for Crypto Markets

With Bitcoin teetering at key support and influential economic and corporate announcements ahead, markets are entering a pivotal phase. Whether BTC holds the trendline or breaks lower may hinge on the tone of the Fed minutes and the strength of Nvidia’s earnings. Meanwhile, XRP’s resilience and growing DeFi ecosystem highlight the expanding use cases for legacy crypto assets beyond simple payments.