Markets
Goldman Sachs, ETH ETF S-1 and more by U.Today
U.Today – The cryptocurrency market is gearing up for a potential turnaround in July, which will be fueled by several crucial factors. Here are five key indicators to watch:
Potential Federal Reserve Rate Cuts
The Federal Reserve could cut interest rates as early as September, according to recent rumors, and again in December. Markets will gain liquidity from these cuts, according to analysts, and cryptocurrencies could benefit from another positive CPI print.
Progress on ETF S-1 filings
Ethereum ETF issuers recently received their S-1 forms back from the SEC, with a request for minor amendments. Before they can be approved, these issuers must respond to criticisms and resubmit, undergoing at least one more round of review. This is a result of attracting more institutional investors.
CFTC Chairman’s Position on Cryptocurrency Regulation
According to recent comments by the CFTC Chairman, between 70% and 80% of cryptocurrencies are not securities, highlighting the need for the CFTC to regulate these assets under the Commodities Exchange Act. This position could end the long-running debate over whether cryptocurrencies are best classified as commodities or securities, providing much-needed regulatory clarity and boosting investor confidence.
Goldman Sachs Tokenization Projects
By the end of the year, Goldman Sachs plans to launch three tokenization initiatives, with an emphasis on the U.S. and European markets. These initiatives, which are being led by tokenization and cryptocurrency enthusiast Mathew McDermott, have the potential to attract significant institutional interest and investment in the crypto business.
JPMorgan’s Optimistic Outlook
In a report released today, JPMorgan predicts a bullish recovery for Bitcoin in August. Despite recent market declines, the bank remains optimistic about Bitcoin’s prospects. The analysis emphasizes that less downward pressure is anticipated as the recent wave of cryptocurrency liquidations fades. To better reflect the current state of the market, JPMorgan also lowered its estimate for year-to-date crypto net inflows from $12 billion to $8 billion.