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

THE crypto market is preparing for a week filled with important events and data releases that could influence investor sentiment and market movements. Highlights include the delay in the launch of Spot Ethereum ETFs, the implementation of the European Union’s MiCA regulations.

Additionally, the market is also gearing up for the release of the Federal Reserve’s June meeting minutes. 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 once again been delayed by the United States Securities and Exchange Commission (SEC). Analysts such as Bloomberg’s Eric Balchunas and James Seyffart had estimated their value around July 2. However, the SEC has issued additional comments on Form S-1s submitted by issuers.

The SEC has now requested that the forms be resubmitted by July 8, pushing back the potential launch date to mid- to late-July. Earlier, SEC Chairman Gary Gensler confirmed that the Ethereum ETF approval process was progressing smoothly for all issuers. While the delay has the Ethereum market in FUD, 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, BlackRock, VanEck, Grayscale, 21Shares, Fidelity and other issuers could see S-1 amendments.

Implementation of MiCA cryptography rules in the EU

On June 30, the European Union’s Markets in Crypto Assets (MiCA) Regulation is set to come into effect. It will introduce one of the first comprehensive regulatory frameworks for crypto trading in a major financial market. However, a recent study by Acuiti and Eventus reveals that 91% of affected businesses are unprepared for MiCA requirements.

This regulatory implementation is therefore expected to reshape the sector. This highlights the urgent need for businesses to accelerate their compliance efforts. Therefore, 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 encourage greater institutional participation in the cryptocurrency market.

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

June FOMC Meeting Minutes

On July 3, the Federal Reserve will release the minutes of its June meeting. 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 This week will be closely monitored. Several publications will provide an overview of employment trends:

1. Job offer data (July 2): The May data, with an estimated 7.860 million job openings, follows April’s 8.059 million. A higher-than-expected figure could indicate a robust labor market, which could raise concerns about inflationary pressures and more hawkish Fed policies, which could negatively impact the crypto market. Conversely, a lower figure could alleviate these concerns and support 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 weaker number could dampen the outlook for economic growth, 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 wages (July 5): An expected increase of 0.3% in June, compared to 0.4% in May. Year-over-year salary growth will also be monitored. Higher wage growth could fuel inflation fears, impacting Fed decisions and market dynamics, including crypto.

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 and other key Fed officials are expected to participate in key discussions at the European Central Bank Forum on Central Banking in Sintra, Portugal. In addition, an event will 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. It is also expected to address pressing issues such as inflation trends and the economic impacts of geopolitical shocks. On the same day, ECB Executive Board members will chair sessions on euro area inflation 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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