Ethereum

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

Published

5 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 filled with important events and data releases that could influence investor sentiment and market movements. Key highlights include the delay in the launch of Ethereum Spot ETFs and the implementation of the European Union’s MiCA regulation.

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 planned launch of Spot Ethereum 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 their valuation 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 the potential launch date to mid-to-late July. Earlier, SEC Chairman Gary Gensler confirmed that the approval process for Ethereum ETFs was progressing smoothly for all issuers. Although the delay leaves the Ethereum market in limbo, 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 could see S-1 amendments from BlackRock, VanEck, Grayscale, 21Shares, Fidelity and other issuers.

Implementation of MiCA cryptography rules in the EU

On June 30, the European Union’s Markets in Crypto-Assets (MiCA) Regulation will come into force. It will introduce one of the first comprehensive regulatory frameworks for crypto-asset trading in a major financial market. However, a recent study by Acuiti and Eventus reveals that 91% of affected firms are not prepared for MiCA’s 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.

Minutes of the June FOMC Meeting

On July 3, the Federal Reserve will release the minutes of its June report. Federal Open Market Committee (FOMC) Meeting at 2:00 p.m. ET. Additionally, the minutes will provide insight into the Fed’s decision-making process, particularly regarding interest rates. Additionally, the pause on rates is expected to continue, with Fed Governor Michelle Bowman indicating that rate cuts are unlikely before 2025 despite recent data on slowing inflation.

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.

U.S. Employment Data for May and June

THE US Labor Market Data will be one to watch closely this week. It will see several releases offering a comprehensive view of employment trends:

1. Job offer 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, down from 272,000 in May. A higher figure could signal economic strength, but could also raise inflation concerns, while a lower figure could dampen economic growth prospects, 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 wage (July 5): Wages are expected to increase by 0.3% in June, compared to 0.4% in May. Year-on-year salary growth will also be monitored. Higher wage growth could stoke inflation fears, impacting Fed decisions and market dynamics, including cryptocurrencies.

Impact of US Trade Deficit Data on Crypto

On July 3, the US trade deficit data for May will be released. April saw an increase of 8.7% to $74.6 billion. A growing deficit could signal economic challenges and potentially discourage investment in high-risk assets like cryptocurrencies. Conversely, a reduction in the deficit could boost investor confidence and have a positive impact on the crypto market.

Speech by Fed Chairman Jereme Powell in Portugal

Chairman of the Federal Reserve Jerome Powell The Fed Chairman and other key Fed officials are expected to participate in important discussions at the European Central Bank Forum on Central Banks in Sintra, Portugal. Additionally, an event will be organized in India. On July 2, Powell will participate in a panel discussion at the ECB Forum.

The panel will focus on monetary policy in the 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, members of the ECB board will chair sessions on inflation in the eurozone and the economics of biodiversity.

On July 3, the forum will feature a keynote address by Christine Lagarde, President of the ECB, and a panel discussion on the factors that determine equilibrium interest rates. John Williams, President of the Federal Reserve Bank of New York, will also participate in the conference.

Following these events, John Williams will deliver a speech in India on July 5 at 5:30 a.m. ET. He previously indicated he saw no urgency to cut short-term rates, despite slowing inflation data. These speeches and discussions will offer critical insights into the Fed’s outlook on inflation, interest rates and global economic trends.

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Ethereum

QCP sees Ethereum as a safe bet amid Bitcoin stagnation

Published

4 months ago

31 July, 2024

Chain Feed Staff

QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.

Read on to find out how you can benefit from it.

Bitcoin’s Struggle: The $70,000 Barrier

For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.

Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.

QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.

The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.

Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.

A glimmer of hope

QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.

QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.

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Ethereum

Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum records $17.9 billion in spot volume despite 3% drop

An Ethereum ICO participant has emerged from nearly a decade of inactivity.

Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.

The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.

Screenshot 2024 07 30 at 171307

This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.

Recent Transactions and Movements

The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.

Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.

Why are whales reactivating?

It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.

In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.

At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Ethereum

Only Bitcoin and Ethereum are viable for ETFs in the near future

Published

4 months ago

31 July, 2024

Chain Feed Staff

BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future

Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.

In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”

Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.

BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.

Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.

Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.

Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.

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Ethereum

Ethereum Posts First Consecutive Monthly Losses Since August 2023 on New ETFs

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum sees first monthly consecutive losses since August 2023 amid new ETFs

Available exclusively via

Bitcoin ETF vs Ethereum: A Detailed Comparison of IBIT and ETHA

Andjela Radmilac · 3 days ago

CryptoSlate’s latest market report takes an in-depth look at the technical and practical differences between IBIT and BlackRock’s ETHA to explain how these products work.

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