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Crypto Set for a “Bright June” According to Industry Experts

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The approval of spot Ethereum (ETH) exchange-traded funds (ETF) in the US sets a good tone for the crypto market in late Q2 2024. Investors’ eyes are on how the price of ETH will react, such as how the altcoin market will behave and which altcoin ETFs could be filed with the SEC in the coming weeks. Industry experts shared their insights on the June outlook with Crypto Briefing.

Tristan Frizza, founder of decentralized exchange Zeta Markets, stated that the crypto market will continue to see “choppy” action in the short term. However, Bitcoin (BTC) whales are still accumulating BTC, while the start of Ethereum ETF trading could increase demand for ETH. This presents an optimistic outlook for the long term into 2024, especially as approval of the ETF will likely spread positive sentiment across the broader market.

Furthermore, with increasing speculation about the direction of the market, the market may see an increase in on-chain derivatives trading volume over time.

Jag Kooner, head of derivatives at Bitfinex, also believes that the approval of Ethereum ETFs represents a significant milestone for crypto, capable of further integrating digital assets into mainstream finance. Furthermore, it increases investor confidence in the short term.

“The approval of the ETF is expected to increase investor confidence and could lead to an increase in ETH prices. Increased liquidity and stability of institutional investments could make ETH a more attractive asset for retail and institutional investors,” Kooner added.

Marko Jurina, CEO of Jumper.Exchange, highlighted that US tax payments have been completed and that China is injecting additional liquidity into the Yuan. Furthermore, there is an expectation that the European Central Bank (ECB) will reduce rates in June or July, in a context of persistent inflation in Europe. Notably, crude oil prices fell below $80 for the first time since February, which can be seen as a de facto stimulus for the consumer.

“These factors are converging to create a potentially volatile market environment, especially as we approach the US presidential election. Consequently, we foresee an increase in market interest and a likely positive trend throughout the summer”, assessed Jurina.

In addition to a heated June with speculation about the start date of Ethereum ETF trading in the US, James Davies, co-founder and CPO of Crypto Valley Exchange, expects a “summer of meme coins” soon. Memetics-based trading could spill over into traditional markets, with stocks like GameStop also receiving significant attention.

“We see a summer containing a meme coin bomb similar to the NFT summer of 2021. As a result, we will likely see some retail money temporarily withdrawn from other high-yield projects,” Davies explained. He added that another big event for crypto in June includes the continued arrival of more traditional market participants into the space.

Darren Franceschini, co-founder of Fideum, was quick to state that the market “could be gearing up for a bright June” as crypto market technical indicators point to a recovery.

“Innovation in the blockchain space continues to advance, and who knows, maybe June will see some exciting new developments. The overall economy is also looking good – the Fed is taking a measured approach with interest rates that could fuel steady growth. Experts are optimistic and June could just be the turning point for a fantastic summer for both crypto and global finance.”

Election year

Two important elections could impact the crypto market in 2024: the European Parliament elections and the US presidential elections. The elections for the European Parliament are close, scheduled to take place between June 6th and 9th. Jag Kooner of Bitfinex highlights that this election is important in shaping future legislation, including policy on cryptocurrencies.

“The elections could represent a major change in the political landscape, with right-wing and populist parties expected to gain substantial ground. This change could influence regulatory positions, potentially leading to tighter controls or, conversely, more favorable policies, depending on the composition of the new parliament,” Kooner added.

Namely, this has a direct impact on the implementation of the Markets in Cryptoassets (MiCA) regulation. MiCA aims to create a unified regulatory framework for cryptocurrencies across the European Union, providing legal clarity and potentially attracting more investment.

“The outcome of the elections will determine the pace and enthusiasm with which these regulations will be implemented. A more cryptocurrency-friendly parliament could accelerate the adoption of supportive regulations, increasing market confidence. On the other hand, a shift to more conservative policies could introduce new compliance challenges and uncertainties,” said the head of derivatives at Bitfinex.

Furthermore, although scheduled for November 5th this year, the US elections could start to impact the crypto regulatory landscape as early as June. Tristan Frizza, from Zeta Markets, highlighted that the market is already considering the effects of a potential Trump victory in the upcoming US elections, and this could lead to a more cryptocurrency-friendly administration.

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