Markets
Goldman Sachs, ETH ETF S-1 Filings and More By U.Today
U.Today – The cryptocurrency market is preparing for a potential reversal in July, which will be fueled by several crucial factors. Here are five major indicators to watch:
Potential Federal Reserve Interest Rate Cut
The Federal Reserve could cut interest rates as early as September, according to the latest rumors, and then again in December. Markets will gain liquidity from these cuts, analysts say, and cryptocurrencies could benefit from another positive CPI.
Progress in ETF S-1 Filings
Ethereum ETF issuers recently received their S-1 forms from the SEC, with a request for minor changes. Before being approved, these issuers must respond to the criticism and resubmit their filing, passing 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 from the CFTC Chairman, between 70 and 80% of cryptocurrencies are not securities, underscoring the need for the CFTC to regulate these assets in accordance with the Commodities Exchange Act. This position could end the protracted debate over whether cryptocurrencies are better classified as commodities or securities, providing much-needed regulatory clarity and boosting investor confidence.
Goldman Sachs’ Tokenization Plans
By the end of the year, Goldman Sachs plans to launch three tokenization initiatives, with a focus on the US and European markets. These initiatives, led by tokenization and crypto enthusiast Mathew McDermott, have the potential to attract major institutional interest and investment in the cryptocurrency sector.
JPMorgan’s optimistic outlook
In a report released today, JPMorgan predicts a bullish rally in Bitcoin in August. Despite recent market pullbacks, the bank remains optimistic about Bitcoin’s outlook. The analysis highlights that downward pressure is expected as the recent wave of cryptocurrency liquidations subsides. To better reflect the current state of the market, JPMorgan also lowered its estimate of year-to-date net cryptocurrency flows from $12 billion to $8 billion.