Significant news this week has drawn interest from both cryptocurrency enthusiasts and investors. The forthcoming release of US CPI data, the possibility of approving spot Ethereum exchange-traded funds (ETFs), and other noteworthy events are expected to influence the cryptocurrency market.
Market participants should be aware and alert as these developments may have broad ramifications.
US lawmakers will vote on H.J. Res. 109, which seeks to overturn the SEC Staff Accounting Bulletin 121 (SAB 121). This bulletin requires financial institutions to include customers' digital assets on their balance sheets, keeping these assets outside the US financial system.
The House and Senate had previously approved the repeal, but President Biden vetoed it, citing concerns for consumer and investor well-being. The upcoming vote is crucial for the crypto market, as its outcome could significantly influence the regulatory environment for digital assets.
Spot Ethereum ETF Approval
Exchange-traded funds (ETFs) for spot Ethereum (ETH) are getting a lot of attention from people who follow the market. Experts believe these ETFs could launch soon after multiple asset managers updated their S-1 forms.
James Seyffart and Eric Balchunas, ETF analysts for Bloomberg Intelligence, speculate that these ETFs might be listed either later next week or during the week of July 15. Nate Geraci, president of ETF Store, shares this view.
He expressed that it would be surprising if spot Ethereum ETFs were not trading within the next two weeks, noting that while he considers the week of July 15 more likely, a launch later next week is still possible.
The SEC's approval procedure is still necessary before these ETFs can be traded. Issuers must still get their S-1 forms approved in order to move forward, even though the SEC has approved the 19b-4 forms.
Since the approval of the 19b-4 forms in late May, the price of ETH has dropped significantly, despite the high level of optimism that has surrounded the final approval of these exchange-traded funds (ETFs). As of right now, ETH is trading at $2,887, down about 26% from the preliminary approval date, according to data from BeInCrypto.
US CPI Data Release
The release of the US Consumer Price Index (CPI) data on July 11 is another key event. Previous data showed no month-to-month increase, easing inflation fears. The Federal Reserve Bank of Cleveland projects core CPI inflation (excluding food and energy) to be 0.28% in June, with headline CPI inflation at 0.08%.
The Federal Reserve will use this data to guide its policy decisions at the July 30-31 meeting. Lower inflation may encourage investment in cryptocurrencies, while higher inflation could lead to increased interest rates, causing market uncertainty.
Jupiter's Supply Reduction Proposal
Jupiter, a decentralized exchange (DEX) on Solana, proposes a 30% reduction in total supply. This includes a voluntary team cut in tokens and a reduction in Jupuary emissions.
The proposal, aiming to improve tokenomics and community involvement, will be voted on in July. Co-founder Meow highlighted the absence of direct investors, allowing for bold decisions to enhance the platform's economic model.
Vela V2 Launch and Upgrades
On July 8, Vela, an Arbitrum-native DEX, will launch Vela V2. This version enhances tokenomics, introduces a new trading competition, and upgrades platform features, including flexible vesting options, governance voting, and an improved staking page.
Vela V2 will also feature a 500,000 ARB prize pool in Grand Prix Season 3, aiming to boost user engagement and platform activity.
Major Token Unlocks
On July 9, Xai, a layer-3 (L3) solution for AAA games, will release nearly 200 million XAI tokens, worth $55.18 million. This unlock represents 71.59% of the total circulating supply and could significantly impact XAI's price.
Aptos will unlock 11.3 million APT tokens on July 12, valued at $62.88 million, accounting for 2.49% of its circulating supply. Other projects, such as Immutable (IMX), will also have token unlocks this week, potentially affecting market dynamics.
These developments highlight the dynamic nature of the cryptocurrency market and its potential for significant changes in the coming days. Investors and market participants should stay informed and be prepared for the implications these events may have on their investments and the broader market.