5 Major Reversal Indicators for Crypto Market in July: Goldman Sachs, ETH ETF S-1 filings and More

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The cryptocurrency market is showing signs of preparation for a possible reversal in July’s trend, driven by several significant influences. Keep an eye on these five key markers:

Federal Reserve’s potential rate cuts

Based on current speculation, the Federal Reserve could reduce interest rates as soon as September, with another potential decrease in December. This reduction is expected to inject more funds into the financial markets, as per market analysts’ predictions. Moreover, a favorable Consumer Price Index (CPI) report may further boost cryptocurrencies.

Progress on Ethereum ETF S-1 filings

As a researcher studying the developments in the world of cryptocurrency exchange-traded funds (ETFs), I’m excited to report that recent news indicates Ethereum ETF issuers have received their S-1 forms back from the Securities and Exchange Commission (SEC). The SEC has requested some minor adjustments before granting approval. Prior to being given the green light, these issuers must address the criticisms and resubmit for further review, likely undergoing at least one more round of scrutiny. This process reflects the growing institutional interest in Ethereum ETFs.

CFTC chair’s stance on crypto regulation

The Chair of the Commodity Futures Trading Commission (CFTC) has stated recently that around 70% to 80% of cryptocurrencies do not fall under the category of securities. This revelation underscores the importance of the CFTC regulating these digital assets in accordance with the Commodity Exchange Act. By clarifying their classification, this stance could put an end to the ongoing debate about whether cryptos should be considered commodities or securities. This regulatory clarity would benefit investors by increasing confidence in the market.

Goldman Sachs’ tokenization projects

Toward the end of this year, Goldman Sachs aims to roll out three projects focusing on tokenization. With a strong focus on both American and European markets, these endeavors, spearheaded by tokenization and cryptocurrency champion Mathew McDermott, hold significant promise in drawing substantial institutional investment into the crypto sector.

JPMorgan’s optimistic Bitcoin outlook

Today, JPMorgan published a report predicting a rebound for Bitcoin in August, despite recent market declines. The bank remains optimistic about Bitcoin’s future despite the recent setbacks. The analysis indicates that downward pressure is expected to lessen as the current wave of cryptocurrency liquidations subsides. To align with current market conditions, JPMorgan has revised its estimation of year-to-date crypto net flow from $12 billion to $8 billion.

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2024-07-12 11:54