Ethereum
Ethereum ETF, FOMC Minutes, US Jobs Data and Trade Deficit
THE cryptocurrency market is preparing for a week filled with important 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 regulations.
Additionally, the market is also preparing for the release of the minutes of the Federal Reserve’s June meeting. Additionally, the week will see US employment data and trade deficit figures. Each of these events is likely to impact the volatile crypto market, making it crucial for investors to stay informed.
Ethereum ETF launch delayed
The expected launch of Ethereum Spot ETFs has been delayed once again by the U.S. Securities and Exchange Commission (SEC). Analysts such as Bloomberg’s Eric Balchunas and James Seyffart had estimated that the launch would take place around July 2. However, the SEC has released additional comments on the S-1 forms submitted by issuers.
The SEC has now requested that the forms be resubmitted by July 8, pushing back the potential launch date to mid- to late-July. Earlier, SEC Chairman Gary Gensler confirmed that the Ethereum ETF approval process was progressing smoothly for all issuers. While the delay has the Ethereum market in FUD, ETFstore President Nate Geraci noted that the revisions were slight.
He suggested trading could begin within 14 to 21 days of resubmission. This delay adds uncertainty to the market, but a successful launch could provide a significant boost to the market. Ethereum Price
and general market sentiment. Therefore, this week, BlackRock, VanEck, Grayscale, 21Shares, Fidelity and other issuers could see S-1 amendments.
Implementation of MiCA crypto rules in the EU
On June 30, the European Union’s Markets in Crypto Assets (MiCA) Regulation is set to come into effect. It will introduce one of the first comprehensive regulatory frameworks for crypto trading in a major financial market. However, a recent study by Acuiti and Eventus reveals that 91% of affected businesses are unprepared for MiCA requirements.
This regulatory implementation is therefore expected to reshape the industry. This underscores the urgent need for companies to accelerate their compliance efforts. Consequently, cryptocurrency businesses that fail to adapt could face significant operational and financial consequences.
This could potentially lead to market disruption and volatility in the short term. However, in the long term, MiCA aims to improve market stability and investor protection, which could foster greater institutional participation in the crypto market.
Read also: US SEC Delays Launch of Spot Ethereum ETF, Returns S-1 Forms
June FOMC Meeting Minutes
On July 3, the Federal Reserve will release the minutes of its June meeting. Meeting of the Federal Open Market Committee (FOMC) at 2 p.m. ET. Additionally, the minutes will provide insight into the Fed’s decision-making process, including interest rate policy. Additionally, the pause on rates is expected to continue, with Fed Governor Michelle Bowman indicating that a rate cut is unlikely before 2025, despite recent inflation data.
Any hint of a hawkish stance could weigh on the crypto market, as higher interest rates typically reduce the appeal of riskier assets like cryptocurrencies. On the other hand, indications of prolonged rate stability or dovish sentiment could support market sentiment and cryptocurrency prices.
US employment data for May and June
THE US labor market data This week will be closely monitored. Several publications will provide an overview of employment trends:
1. Job posting data (July 2): May’s data, with an estimate of 7.860 million job openings, follows April’s 8.059 million. A higher-than-expected figure could indicate a robust labor market, which could lead to concerns about inflationary pressures and more aggressive policies from the Fed, which could negatively impact the cryptocurrency market. Conversely, a lower figure could ease these concerns, supporting cryptocurrency prices.
2. Employment report (July 5): The June jobs report is expected to show 195,000 new jobs, up from 272,000 in May. A higher number could signal economic strength but could also raise inflation concerns, while a lower number could dampen economic growth prospects, thereby affecting market sentiment.
3. Unemployment rate (July 5): It is expected to remain stable at 4.0%. Any deviation could influence the market’s perception of economic stability and the Fed’s future policy actions.
4. Hourly wages (July 5): An expected increase of 0.3% in June, down from 0.4% in May. Year-over-year wage growth will also be monitored. Higher wage growth could fuel inflation fears, which would impact Fed decisions and market dynamics, including crypto.
Impact of US Trade Deficit Data on Cryptocurrencies
On July 3, the U.S. trade deficit data for May will be released. April saw an increase of 8.7%, reaching $74.6 billion. A growing deficit could signal economic difficulties and potentially discourage investment in high-risk assets like cryptocurrencies. Conversely, a reduced deficit could boost investor confidence and have a positive impact on the cryptocurrency market.
Speech by Fed Chairman Jereme Powell in Portugal
Chairman of the Federal Reserve Jerome Powell The Fed Chair and other key Fed officials are expected to participate in key discussions at the European Central Bank Forum on Central Banking in Sintra, Portugal. In addition, an event will be held in India. On July 2, Powell will participate in a think tank panel at the ECB Forum.
The panel will focus on monetary policy in an era of transformation. It is also expected to address pressing issues such as inflation trends and the economic impacts of geopolitical shocks. On the same day, ECB Executive Board members will chair sessions on euro area inflation and the economics of biodiversity.
On July 3, the forum will include remarks from ECB President Christine Lagarde and a panel discussion on the determinants 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. He has previously indicated that he sees no urgency to cut rates in the short term, despite the slowdown in inflation data. These speeches and discussions will provide key insights into the Fed’s outlook for inflation, interest rates, and global economic trends.
Read also: Bitcoin Price at $65,000 or $55,000 After US PCE Data? IMF Asks Fed to Delay Rate Cut