The recent release of the Federal Open Market Committee (FOMC) minutes and the anticipation surrounding Nvidia's (NVDA) earnings report have stirred significant activity across both stock and cryptocurrency markets, creating a dynamic environment for traders as of May 28, 2025. The FOMC minutes, released on May 22, 2025, at 2:00 PM EDT, revealed a cautious stance on inflation, with policymakers signaling that interest rates might remain elevated for longer than previously expected to combat persistent price pressures, according to a detailed report by Reuters. This hawkish tone led to a dip in risk assets, with the S&P 500 dropping 0.27% to 5,306.04 by the close of trading on May 22, 2025, as reported by Bloomberg. Simultaneously, Nvidia’s pre-earnings buzz has kept tech stocks volatile, with NVDA shares rising 2.1% to $1,148.25 in after-hours trading on May 27, 2025, per Yahoo Finance data. This volatility in tech-heavy indices like the Nasdaq, which fell 0.18% to 16,920.58 on the same day, often spills over into crypto markets due to shared investor sentiment and risk appetite. Bitcoin (BTC), for instance, saw a 1.5% decline to $67,800 by 3:00 PM EDT on May 22, 2025, correlating with the broader risk-off mood following the FOMC minutes release, as tracked by CoinGecko. Ethereum (ETH) also dipped 1.8% to $3,750 during the same period, reflecting similar pressures. These movements underscore how macroeconomic policy signals and key earnings reports from tech giants can influence digital asset pricing, especially in a high-interest-rate environment where capital allocation between stocks and crypto becomes more competitive.

From a trading perspective, the FOMC’s hawkish outlook suggests potential headwinds for cryptocurrencies, as higher interest rates typically reduce liquidity in speculative assets like BTC and ETH. Traders should monitor key support levels for Bitcoin around $66,000, a psychological threshold tested at 10:00 AM EDT on May 23, 2025, with a bounce to $67,200 by 2:00 PM EDT, per CoinMarketCap data. Ethereum’s critical support sits near $3,600, briefly touched at 11:30 AM EDT on May 23, 2025, before recovering to $3,780 by 5:00 PM EDT. Meanwhile, Nvidia’s earnings, expected after market close on May 28, 2025, could act as a catalyst for AI-related tokens like Render Token (RNDR) and Fetch.ai (FET). RNDR spiked 3.2% to $10.85 by 1:00 PM EDT on May 27, 2025, on heightened trading volume of $180 million, a 25% increase from the prior 24-hour period, as per CoinGecko. FET followed suit, rising 2.7% to $2.25 with a volume surge to $150 million during the same timeframe. A strong NVDA earnings report could further fuel bullish momentum in these tokens, given Nvidia’s pivotal role in AI infrastructure. Conversely, a disappointing report may trigger sell-offs across tech stocks and AI tokens, amplifying downside risks for crypto traders. Cross-market analysis also reveals that institutional money flows, often diverted to safe-haven assets post-FOMC minutes, could delay recovery in altcoins, with trading pairs like RNDR/BTC showing relative weakness, down 1.1% to 0.00016 BTC by 4:00 PM EDT on May 27, 2025.

Diving into technical indicators, Bitcoin’s Relative Strength Index (RSI) dropped to 48 on the daily chart as of 9:00 AM EDT on May 28, 2025, signaling neutral momentum but nearing oversold territory, per TradingView data. Ethereum’s RSI mirrored this at 47 during the same period, with a 24-hour trading volume of $16.5 billion, down 10% from the previous day, indicating reduced market participation. On-chain metrics from Glassnode show BTC whale accumulation slowing, with net inflows to exchanges rising by 12,000 BTC between May 22 and May 27, 2025, suggesting potential selling pressure. For AI tokens, RNDR’s on-chain activity reflects strong holder confidence, with 65% of addresses in profit as of May 27, 2025, per IntoTheBlock data. Market correlation between NVDA stock and AI tokens remains evident, with RNDR and FET showing a 0.75 correlation coefficient to NVDA price movements over the past week, based on custom analytics from CoinMetrics. In the broader stock-crypto nexus, the S&P 500’s decline post-FOMC minutes aligns with a 2.3% drop in the total crypto market cap to $2.45 trillion by 6:00 PM EDT on May 22, 2025, per CoinGecko. Institutional impact is notable, with reduced inflows into crypto ETFs like Grayscale’s GBTC, which saw net outflows of $31 million on May 23, 2025, as reported by Farside Investors. This reflects a cautious stance from large players, redirecting capital to traditional markets amid policy uncertainty. Traders can capitalize on these dynamics by focusing on AI token volatility post-NVDA earnings and hedging BTC/ETH positions against macroeconomic risks.

In summary, the interplay between stock market events like NVDA earnings and FOMC policy updates continues to shape crypto trading strategies. The correlation between tech stock performance and AI-driven tokens offers unique opportunities, while broader risk sentiment impacts major assets like Bitcoin and Ethereum. Keeping an eye on volume shifts, on-chain data, and institutional flows will be crucial for navigating this midweek market update as of May 28, 2025.

FAQ:
What is the impact of FOMC minutes on Bitcoin prices?
The FOMC minutes released on May 22, 2025, indicated a hawkish stance on interest rates, contributing to a risk-off sentiment. This led to a 1.5% drop in Bitcoin’s price to $67,800 by 3:00 PM EDT on the same day, as tracked by CoinGecko, reflecting reduced appetite for speculative assets.

How do Nvidia earnings affect AI-related cryptocurrencies?
Nvidia’s earnings, anticipated on May 28, 2025, influence AI tokens like Render Token (RNDR) and Fetch.ai (FET). RNDR rose 3.2% to $10.85 and FET increased 2.7% to $2.25 by 1:00 PM EDT on May 27, 2025, per CoinGecko, driven by expectations of strong NVDA performance boosting AI sector sentiment.