The American midfielder will spend the next four weeks with the Trotters' Championship rivals as they look to avoid relegation from England's second tier.
Holden returned from a knee injury in February but has struggled for game time because of match fitness and will now look to up his output with the Owls.
"[The loan] is until April 24," Wednesday press officer Trevor Braithwait told MLSsoccer.com.
"When a quality player becomes available, the manager will be interested. [Holden] ticks a lot of boxes, so we'll see what he can do."