Markets
Ethereum ETF, US CPI and more
This week, major news caught the attention of investors and crypto enthusiasts. The potential approval of an Ethereum spot exchange-traded fund (ETF), the upcoming release of US CPI data, and other major events are expected to shape the cryptocurrency market.
These developments could have far-reaching implications, prompting market participants to remain vigilant and informed.
Major Cryptocurrency Legislation Faces Key Vote in Congress
This week, US lawmakers to vote on HJ 109seeking to rescind the SEC’s controversial Staff Accounting Bulletin 121 (SAB 121). House Majority Leader Steve Scalise’s weekly schedule suggests the resolution could be taken up Tuesday or Wednesday.
The bulletin requires financial institutions to list their customers’ digital assets on their balance sheets. Critics argue that the rule keeps digital assets out of the U.S. financial system.
The House and Senate approved the repeal of SAB 121 in May. However, President Joe Biden vetoed the billstressing his administration’s commitment not to support “measures that jeopardize the well-being of consumers and investors.” Many industry experts and investors believe this will be a crucial vote for the entire cryptocurrency industry.
Ethereum ETF Approval on the Horizon
Market watchers are abuzz over the potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs). After several asset managers updated their S-1 forms, Experts predict that these ETFs could be launched soon.
Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas suggest that these ETFs “could potentially list next week or the week of July 15.” Nate Geraci, president of ETF Store, echoes that sentiment.
“I will be shocked if spot ETH ETFs don’t trade in the next two weeks. Later next week is a possibility, but I think the week of July 15th is more likely,” he said. note.
The SEC approval process remains critical for these ETFs to begin trading. While the SEC has approved the Forms 19b-4, issuers still need to get their Forms S-1 approved before they can proceed.
Despite the optimism surrounding the final approval of these ETFs, the price of ETH has declined significantly since then. Approval of Forms 19b-4 End of May. According to data from BeInCrypto, ETH is now trading at $2,887, down about 26% since the preliminary approval date.
Learn more: Ethereum ETF Explained: What It Is and How It Works
ETH price evolution. Source: Be in crypto
US CPI Data Release and Implications for the Market
Another crucial event this week is the U.S. Consumer Price Index (CPI) data, program for release on July 11. Previous CPI data for May showed no month-over-month increase, providing some respite inflation concerns.
The Federal Reserve Bank of Cleveland’s projections suggest that the monthly increase in headline CPI inflation for June will be 0.08%, with core CPI inflation excluding food and energy at 0.28%. While these estimates are not always precise, they are generally accurate in indicating where the monthly inflation numbers might lie.
The Federal Reserve will nonetheless closely monitor the upcoming data to assess inflation trends and make informed monetary policy decisions. These data will be taken into account at the central bank’s next policy meeting on July 30-31.
Lower inflation figures could indicate economic stability, which could boost investor confidence and direct capital into riskier assets like cryptocurrencies. Conversely, if inflation exceeds expectations, The Federal Reserve can choose to maintain or increase interest ratesinjecting uncertainty into the markets.
Due to their volatile nature, cryptocurrencies could experience significant price swings in response to these economic indicators. Investors should therefore actively monitor CPI data and Fed decisions to guide the market.
Jupiter Supply Reduction Proposal
Jupiter, a Solana-based decentralized exchange (DEX), is about to implement a major change to its tokenomics with a proposal to reduce the total supply of its native token, JUP, by 30%. This proposal, sharing The pseudonymous co-founder Meow is planning a voluntary 30% reduction in tokens allocated to the team and a corresponding reduction in Jupuary emissions. The governance vote on this proposal will take place in July.
Meow pointed out that these changes are possible because Jupiter has no direct investors, allowing the team to take bold steps to optimize the platform’s tokenomics. The proposed changes aim to address high emissions levels, streamline the platform’s financial structure, and more deeply involve the community in Jupiter’s long-term vision.
Learn more: Top 7 Projects on Solana with Huge Potential
Vela V2 Launch and Updates
Vela, a perpetual DEX native to Arbitrum, will do so launch sa Vela V2 on July 8. This release brings improved tokenomics, new trading competition, and enhanced features to the platform.
Vela V2 includes flexible acquisition options and governance voteand a simplified staking page. Additionally, to encourage participation and reward active users, Vela V2 will introduce a 500,000 ARB prize pool during Grand Prix Season 3.
Xai and other major tokens unlocked this week
Xai, a Tier 3 (L3) solution designed for AAA games, will unlock nearly 200 million XAI tokens on July 9. The amount, worth approximately $55.18 million, represents 71.59% of its circulating supply. As a result, this token unlock has sparked discussions within the crypto community about its potential impact on XAI’s price.
Additionally, Aptos will unlock a significant amount of its native token, APTData from TokenUnlocks shows that the Layer 1 (L1) blockchain will distribute 11.3 million APT among community members, core contributors, and investors on July 12. This figure represents 2.49% of its circulating supply, valued at approximately $62.88 million based on the current market price.
Other projects like Immutable (IMX) will also hold token unlocks during the same period. Read this article for more detailed information on the major crypto tokens unlocked this week.
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