As global financial markets await the release of Nvidia’s (NVDA) earnings and the Federal Reserve’s meeting minutes, Bitcoin is showing signs of weakness and struggling to maintain its recent uptrend. Despite several positive developments in the crypto space, the leading cryptocurrency has failed to break above key resistance levels.
Technical Weakness in Bitcoin Despite Positive News
On Wednesday, Bitcoin was trading around $108,900 — a level below its recent ascending trendline. This breakdown below the trendline suggests a potential shift in market sentiment and may signal the beginning of a bearish phase.
Meanwhile, upbeat news in the crypto sector — such as Circle’s IPO plans and Trump Media’s reported intentions to purchase Bitcoin — has not significantly lifted market prices.
On-chain data adds to bearish concerns. According to Glassnode, major Bitcoin holders (those with over 10,000 BTC) have moved into a net distribution phase since May 26. This behavior typically increases selling pressure and indicates a more cautious outlook among whales.
Market Focus: Fed Minutes and Nvidia's Earnings
Investor attention is now firmly on the upcoming release of the Federal Reserve’s May meeting minutes, which could provide deeper insights into future interest rate policies.
At its last meeting, the Fed kept interest rates unchanged, with Chairman Jerome Powell expressing concerns about inflation and warning of potential stagflation. If the minutes echo this hawkish tone, it could have significant implications for financial markets, including crypto assets.
In parallel, Nvidia’s earnings report is expected to be a major catalyst, particularly due to the historical positive correlation between NVDA stock and Bitcoin. A strong performance by the AI giant — especially in light of rising demand and investment in AI infrastructure — could give digital assets a bullish push.
Conclusion
The crypto market is treading cautiously ahead of two key events. Despite positive developments such as new investment plans and IPO announcements, technical weakness in Bitcoin and distribution activity by whales have created downward pressure. The outcome of Nvidia’s earnings and the tone of the Fed minutes may prove crucial in determining Bitcoin’s next direction. Investors are advised to monitor these developments closely.
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