Markets

Ethereum ETF, FOMC Minutes, US Jobs Data, and Trade Deficit

Published

7 months ago

30 June, 2024

Bitcoin drops to $67K, ETH below $3,600, while INJ and GNO rise 4-9%

THE cryptocurrency market is gearing up for a week full of significant 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 regulation.

Additionally, the market is also gearing up for the release of the minutes from the Federal Reserve’s June meeting. Additionally, the week will see US employment data and trade deficit figures. Each of these events has the potential to impact the volatile cryptocurrency market, making it crucial for investors to stay informed.

Ethereum ETF launch delayed

The planned launch of Spot Ethereum ETFs has been postponed again by the U.S. Securities and Exchange Commission (SEC). Analysts such as Eric Balchunas and James Seyffart of Bloomberg had estimated around July 2. However, the SEC has released additional comments on the S-1 forms filed by issuers.

The SEC has now requested that the forms be resubmitted by July 8, pushing the potential launch date back to mid- or late-July. Earlier, SEC Chairman Gary Gensler confirmed that the Ethereum ETF approval process is progressing smoothly for all issuers. While the delay leaves the Ethereum market in FUD, ETFstore President Nate Geraci noted that the revisions were light.

He suggested that negotiations could begin within 14 to 21 days of the new submission. This delay adds uncertainty to the market, but a successful launch could provide a significant boost to the market Ethereum Price

and overall market sentiment. Therefore, this week could see S-1 amendments from BlackRock, VanEck, Grayscale, 21Shares, Fidelity and other issuers.

Implementation of MiCA Crypto rules in the EU

The European Union’s Markets in Cryptocurrency Regulation (MiCA) will come into force on June 30. It will introduce one of the first comprehensive regulatory frameworks for cryptocurrency trading in a major financial market. However, a recent study by Acuiti and Eventus reveals that 91% of affected companies are not prepared for MiCA requirements.

Therefore, this regulatory implementation is expected to reshape the industry. This highlights the urgent need for companies to accelerate their compliance efforts. Therefore, cryptocurrency companies that fail to adapt could face significant operational and financial consequences.

It 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 encourage greater institutional participation in the cryptocurrency market.

Minutes of the June FOMC meeting

The Federal Reserve will release the minutes of its June meeting on July 3. Federal Open Market Committee (FOMC) meeting at 2 p.m. ET. Additionally, the minutes will provide insights into the Fed’s decision-making process, particularly when it comes to interest rates. Additionally, a pause on rates is expected to continue as Fed Governor Michelle Bowman indicated that rate cuts are unlikely before 2025 despite recent cooling inflation data.

Any hint of a hawkish stance could weigh on the cryptocurrency market, as higher interest rates typically reduce the attractiveness of riskier assets like cryptocurrencies. On the other hand, signs of prolonged rate stability or dovish sentiment could support market sentiment and cryptocurrency prices.

US jobs data for May and June

THE Data on the American labor market will be closely followed this week. It will see multiple releases that will provide a comprehensive view of employment trends:

1. Job offers data (July 2): The May figure, with an estimated 7.860 million vacancies, 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 hawkish Fed policies, which could negatively impact the cryptocurrency market. Conversely, a lower figure could alleviate these concerns, supporting cryptocurrency prices.

2. Employment Report (July 5): The June employment report is expected to show 195,000 new jobs, down 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, affecting market sentiment.

3. Unemployment rate (July 5): It is expected to remain steady at 4.0%. Any deviation could affect the market’s perception of economic stability and future policy actions by the Fed.

4. Hourly wage (July 5): It is expected to rise 0.3% in June, down from 0.4% in May. Annual wage growth will also be monitored. Higher wage growth could fuel inflation fears, influencing Fed decisions and market dynamics, including cryptocurrencies.

Impact of US Trade Deficit Data on Cryptocurrencies

US trade deficit data for May will be released on July 3. April saw an increase of 8.7% to $74.6 billion. A widening deficit could signal economic challenges and potentially discourage investments in high-risk assets such as cryptocurrencies. Conversely, a declining 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 and other key Fed officials are scheduled to participate in meaningful discussions at the European Central Bank Forum on Central Banking in Sintra, Portugal. An event will also be held in India. On July 2, Powell will join a policy panel at the ECB Forum.

The panel will focus on monetary policy in an era of transformation. In addition, this panel is expected to address pressing issues such as inflation trends and the economic impacts of geopolitical shocks. On the same day, ECB Governing Council members will chair sessions on euro area inflation and the economics of biodiversity.

On July 3, the forum will feature remarks by ECB President Christine Lagarde and a panel discussion on the drivers 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 be speaking in India on July 5 at 5:30 a.m. ET. Earlier, he said he sees no urgency for rate cuts in the near term, despite the cooling inflation data. These speeches and discussions will offer critical insights into the Fed’s outlook on inflation, interest rates, and global economic trends.

Fuente

Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

Fuente

Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

6 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

Fuente

Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

Fuente

Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
Binance $600 Free (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (full details).

LIMITED OFFER 2024 on BYDFi Exchange: Up to $2,888 Welcome Reward, use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the authors cited. It does not represent CryptoPotato’s views on the advisability of buying, selling, or holding any investment. We recommend that you conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency Charts by TradingView.

Fuente