Cryptocurrency Market July, 29, 2024

ETH ETF update

the U.S. Securities and Exchange Commission (SEC) granted final approval for spot exchange-traded funds (ETFs) that hold Ethereum’s ether (ETH). This decision allows Americans to access a second major cryptocurrency through easy-to-trade vehicles. The approval followed the SEC’s earlier approval of Bitcoin (BTC) ETFs in January. By packaging ether in an ETF wrapper, it becomes more accessible to conventional investors who can buy and sell it through traditional brokerage accounts¹.

The first batch of Ethereum ETFs was approved on May 23, 2024. Notable issuers like VanEck, Franklin, Grayscale, Fidelity, Bitwise, ARK Invest, 21Shares, BlackRock, Invesco, and Galaxy received approval. While the spot Ethereum ETFs are expected to attract inflows, they may not reach the same levels as their Bitcoin-focused counterparts. Research firms predict that the newly launched ETFs could see $15 billion to $20 billion worth of inflows in the first year².

As for Ethereum’s price, while a spot ETH ETF could potentially move the price up to $6,500, it remains to be seen how investor demand will unfold compared to Bitcoin ETFs¹.

2. Inflation and Interest Rates

Crypto investors closely monitored the Federal Reserve’s progress on inflation. The hope is that the Fed will achieve a “soft landing” for the U.S. economy and begin cutting interest rates in the second half of 2024. Such rate decisions can significantly impact crypto markets.

The next Federal Open Market Committee (FOMC) meeting is scheduled for July 30-31, 2024¹. During this meeting, the Federal Reserve is widely expected to maintain its influential interest rate at its current 23-year-high level. Market watchers and economists will be keenly observing for any signals regarding future rate cuts. While inflation moderated in the second quarter, the job market has continued to soften, prompting discussions about the timeline for interest rate reductions². Lower interest rates are on the horizon, but they may not be implemented just yet. The Fed remains cautious, balancing inflation concerns with economic growth considerations².

The 2024 US election had notable implications for the cryptocurrency market. Here are some key takeaways:

1. Crypto Ownership and Voter Influence:
   • Approximately 20% of the US voting population owns cryptocurrency, and 30% are more likely to vote for a candidate who supports digital currencies¹.
   • Voters believe that presidential candidates should be informed about emerging technologies like AI and crypto.
   • This shows that crypto is no longer a niche topic; it’s a cornerstone issue in political campaigns.
2. Candidates’ Stance on Crypto:
   • Former President Donald Trump, once critical of cryptocurrencies, now embraces them. He accepts crypto donations and advocates for making the US a Bitcoin mining hub.
   • Independent candidate Robert Kennedy Junior also courts the crypto vote.
   • The Biden (now Kamala Harris) campaign considered accepting crypto donations, aiming to attract young crypto-focused voters¹.
3. Market Impact:
   • Overall, the election’s outcome is unlikely to have major long-term effects on cryptocurrency markets.
   • The growing crypto lobby and increasing crypto ownership will continue to influence legislation, regardless of the election result².
4. Inflation and Bitcoin:
   • Nearly 50% of American voters plan to include cryptocurrency in their investment portfolios.
   • Bitcoin’s potential as an inflation hedge is highlighted, with 21% of voters more interested due to inflation concerns³.
5. Crypto Policies Matter:
   • Voters pay attention to crypto policies, influenced by geopolitical and economic factors.
   • Coinbase’s campaign targets the 15% of the population owning crypto, opposing restrictive legislation⁴.

Market Analysis

1. Market Performance

Ethereum (ETH) remained strong, closing the month around $3,562 so far. Near Support $3,285 & Near Resistance is $3360. Bitcoin (BTC) closing $70,079 with near Support, $68,000 and near Resistance at $69,799.

Bitcoin’s price rally toward $70,000 could boost interest in $XRP, $KAS, $STX, and $JASMY

If Bitcoin reaches $70,000, it may trigger buying in these altcoins:

$XRP: Consolidating between $0.57 and $0.64. A break above $0.64 could push it to $0.74.

$KAS: Forming a bullish pattern, targeting $0.24 if it breaks above $0.19.

$STX: A bullish crossover suggests potential gains, with targets at $2.50 and $2.65.

$JASMY: Bulls need to overcome $0.033 for a move to $0.039.1

Trading Sentiment

Investors remained cautiously optimistic, balancing regulatory news, economic data, and market volatility. Sentiment shifted based on political events.

Disclaimer: This blog post provides general information and should not be considered financial advice. Always conduct your research and consult with professionals before making investment decisions.