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Ethereum ETF, US CPI, and More

Published

3 months ago

July 8, 2024

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This week, major news has captured the attention of crypto investors and enthusiasts alike. A potential spot Ethereum exchange-traded fund (ETF) approval, the upcoming US CPI data release, and other significant events are set to shape the crypto market.

These developments could have far-reaching implications, prompting market participants to stay vigilant and informed.

Major Crypto Legislation Faces Key Vote in Congress

This week, US lawmakers will vote on H.J. Res. 109, aiming to overturn the controversial SEC Staff Accounting Bulletin 121 (SAB 121). House Majority Leader Steve Scalise’s weekly schedule suggests that the resolution could be considered on Tuesday or Wednesday.

This bulletin requires financial institutions to list their customers’ digital assets on their balance sheets. Critics argue that this rule keeps digital assets outside the US financial system.

Both the House and Senate approved the repeal of SAB 121 in May. Still, President Joe Biden vetoed the bill, emphasizing his administration’s commitment to not supporting “measures that jeopardize the well-being of consumers and investors.” Many industry experts and investors believe this will be a crucial vote for the broader crypto industry.

Spot Ethereum ETF Approval on the Horizon

Market watchers are abuzz with expectations surrounding the potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs). After several asset managers updated their S-1 forms, experts predict these ETFs could launch soon.

Bloomberg Intelligence’s ETF analysts, James Seyffart and Eric Balchunas, suggest that these ETFs “could potentially list later next week or the week of July 15.” Nate Geraci, president of ETF Store, echoes this sentiment.

“Will be shocked if spot ETH ETFs are not trading within the next 2 weeks. Later next week is a possibility, but I think the week of July 15 is more likely,” he noted.

The SEC’s approval process remains critical for these ETFs to commence trading. While the SEC has approved the 19b-4 forms, issuers still need their S-1 forms approved to proceed.

Despite the optimism surrounding the final approval of these ETFs, the price of ETH has decreased significantly since the approval of the 19b-4 forms in late May. According to BeInCrypto data, ETH is now trading at $2,887, marking a roughly 26% decrease since the preliminary approval date.

ETH Price Performance. Source: BeInCrypto

US CPI Data Release and Its Market Implications

Another critical event this week is the US Consumer Price Index (CPI) data, scheduled for release on July 11. The previous CPI data for May showed no month-to-month increase, which offers some respite to inflation concerns.

Projections from the Federal Reserve Bank of Cleveland suggest that the monthly increase in headline CPI inflation for June will be 0.08%, with core CPI inflation, excluding food and energy, at 0.28%. Although these estimates are not always precise, they are generally accurate in indicating where monthly inflation figures might land.

Nonetheless, the Federal Reserve will closely monitor the upcoming figures to gauge inflation trends and make informed policy decisions. This data will be considered at the central bank’s next policy meeting on July 30-31.

Lower inflation figures could indicate economic stability, potentially boosting investor confidence and driving capital into riskier assets like cryptocurrencies. Conversely, if inflation exceeds expectations, the Federal Reserve may opt to hold or raise interest rates, injecting uncertainty into the markets.

Due to their volatile nature, cryptocurrencies could undergo significant price changes in reaction to these economic indicators. Thus, investors should actively monitor CPI data and the Fed’s decisions to navigate the market.

Jupiter’s Supply Reduction Proposal

Jupiter, a Solana-based decentralized exchange (DEX), is set to implement a significant change in its tokenomics with a proposal to reduce the total supply of its native token, JUP, by 30%. This proposal, shared by the pseudonymous co-founder Meow, includes a voluntary team cut of 30% from their allocated tokens and a corresponding reduction in Jupuary emissions. The governance vote on this proposal will occur somewhere in July.

Meow emphasized that these changes are possible because Jupiter does not have direct investors, allowing the team to make bold moves to optimize the platform’s tokenomics. The proposed changes aim to address high emissions levels, streamline the platform’s financial structure, and engage the community more deeply in Jupiter’s long-term vision.

Vela V2 Launch and Upgrades

Vela, an Arbitrum-native perpetual DEX, will launch its Vela V2 on July 8. This version brings upgraded tokenomics, a new trading competition, and enhanced features to the platform.

Vela V2 includes flexible vesting options, governance voting, and a simplified staking page. Additionally, to incentivize participation and reward active users, Vela V2 will introduce a 500,000 ARB prize pool in Grand Prix Season 3.

Xai and Other Major Token Unlocks This Week

Xai, a layer-3 (L3) solution designed for AAA gaming, will unlock nearly 200 million XAI tokens on July 9. The amount, worth around $55.18 million, accounts for 71.59% of its circulating supply. Therefore, this token unlock has sparked discussions among the crypto community about its potential impact on XAI’s price.

Additionally, Aptos will unlock a significant amount of its native token, APT. TokenUnlocks data shows that the layer-1 (L1) blockchain will distribute 11.3 million APT among community members, core contributors, and investors on July 12. This figure represents 2.49% of its circulating supply, valued at approximately $62.88 million based on the current market price.

Other projects like Immutable (IMX) will also hold token unlocks over the same period. Read this article for further detailed information on major crypto token unlocks this week.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

POPCAT Surges Past $1.0094 All-Time High

Published

6 hours ago

October 6, 2024

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Este artículo también está disponible en español.

POPCAT has achieved a remarkable milestone by surging past its all-time high of $1.0094, igniting excitement among traders and investors alike. This breakout signals a powerful bullish momentum, prompting a re-evaluation of the asset’s potential for further gains. As the market reacts to this significant price movement, understanding the underlying technical factors and market dynamics is crucial for forecasting future price action.

In this technical breakdown, we will analyze the recent surge of POPCAT past its previous all-time high of $1.0094, focusing on the technical indicators and market conditions that have contributed to this breakout. By examining key support and resistance levels, as well as the potential for a continued bullish trajectory, we will assess the implications of this price action for traders and investors.

Additionally, the article will explore potential scenarios for POPCAT’s price movement, providing insights into what to expect in the coming days and how market sentiment may influence future trends.

Analyzing Technical Indicators After New Peak

On the 4-hour chart, POPCAT has demonstrated impressive bullish momentum, breaking above both the 100-day Simple Moving Average (SMA) and its previous all-time high of $1.0094. Reaching a new all-time high marks a critical milestone for the meme coin, as it validates the positive trend and opens the door for potential new highs.

An analysis of the 4-hour Relative Strength Index (RSI) reveals a renewed upward potential, as the RSI has climbed back to 68% after dipping to 45%. This upward shift indicates increasing buying pressure. If the RSI continues on this trajectory, it could signal more upside movements for POPCAT, paving the way for new highs, and reinforcing the bullish trend.

Support And Resistance Levels: Navigating The New Terrain For POPCAT

Support Levels: The immediate support level to watch is the $1.0094 mark, which may act as a psychological level for buyers. Should it fall below this range, the next significant support could be found around the $0.80 mark, serving as a strong base for possible rebounds.

Ethereum Co-founder Buterin Divests Meme Coins For $341K

Published

11 hours ago

October 5, 2024

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Vitalik Buterin’s associated Ethereum wallet conducted a large transaction today, divesting a range of meme coins and Tether’s USDT for ETH.

Blockchain data reveals that developers sent these unsolicited meme tokens to Buterin’s wallet throughout the past year.

Why Did Buterin Offload Over $300,000 in Meme Coins?

On October 5, Buterin sold four different tokens, netting 140.67 ETH, worth approximately $341,000. Blockchain analysis platform Lookonchain reported that Buterin sold 11.76 billion Moodeng tokens for 21 ETH (around $51,000) and 70.72 million Neiro for $72,400.

The other assets he sold included 7.8 million Degen for 25 ETH (around $61,000) and 16 billion Kabosu tokens for 22.94 ETH (approximately $56,000). Additionally, Buterin converted his entire USDT balance of 101,000 USDT into 41.69 ETH.

After these sales, another crypto analytical platform, SpotOnChain, noted that Buterin sent 100 ETH (approximately $242,000) to the “Free Alexey & Roman” campaign. This initiative supports the legal defense of Tornado Cash developers Alexey Pertsev and Roman Storm.

Vitalik Buterin Transactions. Source: SpotOnChain

It is unclear if the donated funds came from his recent token sales or from other sources. Nevertheless, the move aligns with Buterin’s ongoing practice of converting meme coin holdings into charitable contributions.

Earlier this year, he sold a vast amount of animal meme tokens that were sent to him and donated $532,000 worth of ETH to the Animal Welfare Fund under the Effective Altruism initiative.

Interestingly, one of the tokens the Ethereum co-founder sold recently requested that he donate the proceeds to the same cause.

“Hey, Vitalik Buterin — can we ask you for a favor? We know what you did for NEIRO when you sold. Now that you sold your ITO, could you make the same donation to the Animal Welfare Fund on behalf of ITO?,” ITO wrote on X.

Meanwhile, the Ethereum co-founder has publicly stated his disapproval of receiving unsolicited tokens. While he appreciates contributing to charitable causes, he prefers that meme coin creators allocate tokens directly to charities.

Buterin also addressed this issue in a blog post, encouraging the crypto community to design meme coins with practical uses, such as charity fundraising, rather than as speculative assets.

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Altcoin Gainers of October 2024 First Week

Published

12 hours ago

October 5, 2024

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Heading into October and Q4, the markets have already begun recovering, bringing gains to many crypto assets, with some altcoins even establishing new all-time highs.

BeInCrypto has analyzed the top three best-performing altcoins of the last seven days, which include Solana meme coin POPCAT, which formed a new ATH this week.

FTX Token (FTT)

FTX’s native token, FTT, surprised the market by outperforming every major altcoin in the top 100 cryptocurrencies. FTT surged by 95% over the week and is currently trading at $2.72. This dramatic rise has caught the attention of both traders and investors alike.

The rally was primarily driven by rumors surrounding the beginning of repayment to creditors. With the hearing for the distribution plan scheduled for October 7, the bullish sentiment is expected to continue, potentially fueling further price increase.

If the momentum holds, FTT could rise to $2.98. However, the token could see a drawdown to $2.54 or even $2.20 if it wanes, making investors cautious of potential risks.

Popcat (POPCAT)

POPCAT price reached a new all-time high this week, soaring by 31% in the last 24 hours. This Solana-based meme coin broke through the $1.00 resistance, setting a new ATH at $1.29 after struggling to breach that level throughout the week.

The catalyst for this sudden rally remains unclear, but if POPCAT holders avoid selling, the coin could continue its upward trajectory. This could result in the formation of a new ATH, further boosting market sentiment.

POPCAT Price Analysis. Source: TradingView

However, if profit-taking ensues, it may halt the bullish momentum. A drop to $1.00 could follow, and losing this key support level would invalidate the current bullish outlook.

Wormhole (W)

Wormhole’s price may not have seen explosive gains like other tokens, but it still impressed with a 14.8% rise. Currently trading at $0.34, the altcoin has gained the attention of its investors.

Wormhole nearly reached an intra-week high of $0.42 but fell back under the $0.35 resistance. This barrier has been intact since mid-July, and breaching it could lead to a further rise toward the $0.42 mark.

Read more: 10 Best Altcoin Exchanges In 2024

Wormhole Price Analysis. Source: TradingView

Testing $0.42 as resistance would set a near four-month high. However, if Wormhole fails to break $0.35, it may remain in consolidation between $0.28 and $0.35, invalidating the bullish outlook.

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 is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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