Markets

Ethereum ETF, FOMC Minutes, US Employment Data and Trade Deficit

Published

7 months ago

30 June, 2024

Bitcoin drops to $67K, ETH below $3,600, while INJ and GNO rise 4-9%

O cryptocurrency market is gearing up for a week full of significant events and data releases that could influence investor sentiment and market movements. Key highlights include the delay in the launch of Spot Ethereum ETFs and the implementation of the European Union’s MiCA regulation.

Furthermore, the market is also bracing for the release of the minutes from the Federal Reserve’s June meeting. In addition, the week will see US jobs data and trade deficit figures. Each of these events has the potential to impact the volatile cryptocurrency market, making it crucial for investors to stay informed.

Ethereum ETF Launch Postponed

The anticipated launch of spot Ethereum ETFs has been delayed once again by the US Securities and Exchange Commission (SEC). Analysts including Bloomberg’s Eric Balchunas and James Seyffart estimated it to be around July 2. However, the SEC has issued additional comments on the S-1 forms submitted by the issuers.

The SEC has now requested that the forms be resubmitted by July 8, pushing the potential release date to mid- or late-July. Previously, SEC Chairman Gary Gensler confirmed that the Ethereum ETF approval process is progressing smoothly for all issuers. While the delay leaves the Ethereum market in FUD, ETFstore President Nate Geraci noted that the revisions were light.

He suggested that trading could begin within 14 to 21 days of the relisting. This delay adds uncertainty to the market, but a successful launch could provide a significant boost to the Ethereum Price

and general market sentiment. Therefore, this week may see S-1 amendments by BlackRock, VanEck, Grayscale, 21Shares, Fidelity and other issuers.

Implementation of MiCA encryption rules in the EU

On June 30, the European Union’s Markets in Crypto-Assets Regulation (MiCA) is set to come into effect. It will introduce one of the first comprehensive regulatory frameworks for cryptocurrency trading in a major financial market. However, a recent study by Acuiti and Eventus reveals that 91% of affected companies are not prepared for MiCA’s requirements.

Therefore, this regulatory implementation is expected to reshape the industry. This emphasizes the urgent need for companies to accelerate their compliance efforts. Therefore, cryptocurrency companies that fail to adapt could face significant operational and financial consequences.

This could potentially lead to market disruptions and volatility in the short term. However, in the long term, MiCA aims to increase market stability and investor protection, which could promote greater institutional participation in the crypto market.

Read too: US SEC Delays Launch of Spot Ethereum ETF, Sends Back S-1 Forms

Minutes of the June FOMC meeting

On July 3, the Federal Reserve will release the minutes of its June meeting. Federal Open Market Committee (FOMC) Meeting at 2 p.m. ET. Additionally, the minutes will provide insights into the Fed’s decision-making process, particularly regarding interest rates. Furthermore, a pause in rates is expected to continue, as Fed Governor Michelle Bowman has indicated that rate cuts are unlikely before 2025, despite recent cooling inflation data.

Any hint of an aggressive stance could weigh on the cryptocurrency market, as higher interest rates typically reduce the appeal of riskier assets such as cryptocurrencies. On the other hand, indications of prolonged rate stability or peaceful sentiment could support market sentiment and cryptocurrency prices.

US jobs data for May and June

O US Labor Market Data will be closely monitored this week. It will see several releases providing a comprehensive view of employment trends:

1. Job vacancy data (July 2): May’s data, with an estimated 7.860 million job openings, follows April’s 8.059 million. A higher-than-expected number could indicate a robust job market, potentially leading to concerns about inflationary pressures and more aggressive Fed policies, which could negatively impact the cryptocurrency market. On the other hand, a lower number could alleviate these concerns, supporting cryptocurrency prices.

2. Employment Report (July 5): The June employment report is expected to show 195,000 new jobs, down from 272,000 in May. A higher number could signal economic strength but could also raise inflation concerns, while a lower number could dampen the outlook for economic growth, weighing on market sentiment.

3. Unemployment rate (July 5): It is expected to remain steady at 4.0%. Any deviation could influence market perceptions about economic stability and future Fed policy actions.

4. Hourly Wages (July 5): A 0.3% increase is forecast for June, down from 0.4% in May. Year-over-year wage growth will also be monitored. Higher wage growth could fuel inflation fears, impacting Fed decisions and market dynamics, including crypto.

Impact of US Trade Deficit Data on Crypto

On July 3rd, data on the US trade deficit for May will be released. April saw an 8.7% increase to $74.6 billion. A growing deficit could signal economic challenges and potentially dissuade investment in high-risk assets such as cryptocurrencies. On the other hand, a decreasing deficit could increase investor confidence and positively impact the crypto market.

Speech by Fed Chairman Jereme Powell in Portugal

Chairman of the Federal Reserve Jerome Powell Powell and other key Fed officials are scheduled to participate in substantive discussions at the European Central Bank’s Central Banking Forum in Sintra, Portugal. In addition, an event will be held in India. On July 2, Powell will participate in a policy panel at the ECB Forum.

The panel will focus on monetary policy in an era of transformation. Furthermore, this panel is expected to address pressing issues such as inflation trends and the economic impacts of geopolitical shocks. On the same day, ECB board members will chair sessions on euro area inflation and the economics of biodiversity.

On 3 July, the forum will feature remarks from ECB President Christine Lagarde and a panel discussion on the drivers of equilibrium interest rates. It will also include John Williams, President of the Federal Reserve Bank of New York.

Following these events, John Williams will deliver a speech in India on July 5 at 5:30 a.m. ET. Earlier, he indicated that he sees no urgency for rate cuts in the near term, despite cooling inflation data. These speeches and debates will provide critical insights into the Fed’s outlook on inflation, interest rates, and global economic trends.

Read too: Bitcoin Price To $65k Or $55k After US PCE Data? IMF asks Fed to delay rate cuts

Source

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

6 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

6 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

6 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week