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

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.

Read also : US SEC delays launch of Spot Ethereum ETF, returns S-1 forms

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.

Read also : Bitcoin Price at $65,000 or $55,000 After US PCE Data? IMF Asks Fed to Delay Rate Cut

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