Crypto Today: $BTC , #USBTCStrategicReserve Ethereum, XRP Tests Recovery Strength as Focus Shifts to Fed Meeting Minutes
Bitcoin holds above the $77,000 support as traders await the release of the Fed minutes from the April meeting.
Ethereum gains momentum as buyers step in at $2,100, supported by stable futures Open Interest.
XRP breaks above the $1.35 support amid rising retail demand.
Bitcoin (BTC) maintains support at $77,000 after a recent drop from the May peak around $82,500. The broader cryptocurrency market, including altcoins like Ethereum (ETH) and Ripple (XRP), shows signs of a gentle recovery, with ETH stabilizing above $2,100 and XRP bouncing off support at $1.35.
All eyes are on the Fed's minutes.
The Federal Reserve (the Fed) will release the minutes of the April Federal Open Market Committee (FOMC) meeting at 18:00 GMT on Wednesday (Thursday, 01:00 WIB). Although interest rates remain unchanged in the 3.50%-3.75% range, market participants will be watching for sentiment from hawkish committee members, especially after US inflation data for April came in higher than expected.
Another key takeaway from the minutes is likely the stance of Fed officials on inflation and policy direction, especially under the new Chair Kevin Warsh.
Market participants have priced in a 96.7% probability that the Fed will keep interest rates in the 3.50%-3.75% range at the next review cycle scheduled for June 17. Additionally, rising inflation and growing macroeconomic uncertainty due to the US-Iran conflict increase the chances of a rate hike by late 2026.
Meanwhile, retail demand for Bitcoin appears to be waning, evidenced by a drop in Open Interest (OI) for futures contracts to $56.29 billion on Wednesday, down from $57.17 billion the day before and well below the monthly peak of $64.17 billion reached on May 6. If current OI continues to decline, it will indicate a lack of confidence in BTC's ability to maintain short-term gains, as traders shy away from opening new positions.
On the flip side, Ethereum derivatives saw a slight uptick with Open Interest (OI) hitting $31.50 billion on Wednesday, up from $31.34 billion the day before and $30.73 billion on Monday. Interest in ETH perpetual futures contracts is expected to grow exponentially to support price recovery.
Retail interest in XRP remains steady with average OI for futures contracts at $2.93 billion on Wednesday, up from $2.83 billion the day before. Further increases in OI could help stabilize XRP prices towards the key level of $1.40.