In the market waterfall, some people are optimistic and some are pessimistic.
If you sell your chips in desperation, they will often be sold for less than their true value.
Even if you are pessimistic about the future market, you can choose to wait and gradually sell after the market recovers.
This will earn you more returns than those who sell their chips in a panic.
This week, major news has captured the attention of cryptocurrency investors and enthusiasts. The potential approval of an Ethereum spot exchange-traded fund (ETF), the upcoming release of U.S. CPI data, and other major events will impact the cryptocurrency market. These developments can have far-reaching consequences, prompting market participants to stay alert and informed.
Major encryption legislation faces key congressional vote
This week, the U.S. Congress will vote on HJ Res. 109, which seeks to overturn the controversial SEC Staff Accounting Bulletin 121 (SAB 121). House Majority Leader Steve Scalise’s weekly schedule suggests the resolution could be considered on Tuesday or Wednesday.
The announcement requires financial institutions to list customers’ digital assets on their balance sheets, a rule that critics say excludes digital assets from the U.S. financial system.
Both the House of Representatives and the Senate approved the repeal of SAB 121 in May. However, President Joe Biden vetoed the bill, emphasizing his administration’s commitment to not support “measures that endanger the welfare of consumers and investors.” Many industry experts and investors believe that this will be a crucial vote for the entire crypto industry.
Ethereum spot ETF is about to be approved
Market watchers are excited about the potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs). After several asset managers updated their S-1 forms, experts predict that these ETFs could be launched soon.
James Seyffart and Eric Balchunas, ETF analysts at Bloomberg Intelligence, said the ETFs “could be available late next week or the week of July 15.” Nate Geraci, president of the ETF Store, echoed that sentiment.
The SEC approval process remains crucial for these ETFs to begin trading. While the SEC has approved the Form 19b-4, issuers still need the Form S-1 to be approved before they can proceed.
Despite the optimism surrounding the final approval of these ETFs, the price of ETH has fallen significantly since the Form 19b-4 was approved in late May. According to BeInCrypto, ETH is currently trading at $2,887, down about 26% since the initial approval date.
US CPI data release and its market impact
Another important event this week is the U.S. Consumer Price Index (CPI) data to be released on July 11. The previously released CPI data for May showed no month-on-month growth, which to some extent eased inflation concerns.
The Cleveland Federal Reserve Bank's forecasts show that headline CPI inflation will increase by 0.08% on a monthly basis in June, and core CPI inflation, which excludes food and energy, will increase by 0.28% on a monthly basis. While these estimates are not always accurate, they usually give a good indication of where the monthly inflation numbers are likely to be.
Still, the Fed will keep a close eye on incoming data to gauge inflation trends and make informed policy decisions. The central bank will consider the data at its next policy meeting on July 30-31.
Lower inflation data could indicate economic stability, potentially boosting investor confidence and driving capital into riskier assets such as cryptocurrencies. Conversely, if inflation exceeds expectations, the Fed may choose to maintain or raise interest rates, injecting uncertainty into the market.
Due to the volatility of cryptocurrencies, their prices can change significantly in response to these economic indicators. Therefore, investors should actively pay attention to CPI data and Fed decisions to guide the market.
JUP’s Supply Reduction Proposal
Solana-based decentralized exchange (DEX) Jupiter will make a major change to its token economics, proposing a 30% reduction in the total supply of its native token JUP. The proposal, shared by anonymous co-founder Meow, involves a voluntary 30% cut in the team’s allocated tokens and a corresponding reduction in Jupuary issuance. A governance vote on the proposal will take place around July.
Meow stressed that these changes are possible because Jupiter has no direct investors, which allows the team to take bold moves to optimize the platform’s token economics. The proposed changes are designed to address high emission levels, simplify the platform’s financial structure, and allow the community to more deeply participate in Jupiter’s long-term vision.
Vela V2 release and upgrade
Vela, Arbitrum’s native perpetual DEX, will launch its Vela V2 on July 8. This release brings upgraded token economics, new trading competitions, and enhanced functionality to the platform.
Vela V2 includes flexible vesting options, governance voting, and a simplified staking page. In addition, to incentivize participation and reward active users, Vela V2 will launch a 500,000 ARB prize pool in the third season of the Grand Prix.
Xai and other major tokens unlocked this week
Xai, a third-layer (L3) solution designed for AAA games, will unlock nearly 200 million XAI tokens on July 9. The token is worth approximately $55.18 million and accounts for 71.59% of its circulating supply. As a result, this token unlock has sparked discussions in the cryptocurrency community about its potential impact on the price of XAI.
In addition, Aptos will unlock a large amount of its native token APT. According to TokenUnlocks data, the Layer 1 (L1) blockchain will distribute 11.3 million APT among community members, core contributors, and investors on July 12. This figure accounts for 2.49% of its circulating supply and is worth approximately $62.88 million at current market prices. Other projects such as Immutable (IMX) will also unlock tokens during the same period.
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