According to U.Today, the crypto market could see a potential turnaround in July, driven by several significant factors. These include potential rate cuts by the Federal Reserve, progress on Ethereum ETF S-1 filings, the stance of the CFTC chair on crypto regulation, Goldman Sachs' tokenization projects, and JPMorgan's optimistic Bitcoin outlook.
The Federal Reserve may cut interest rates as early as September, and again in December, according to recent rumors. Analysts suggest that these cuts could increase market liquidity, potentially benefiting cryptocurrencies if there is another positive CPI print.
In terms of Ethereum ETF S-1 filings, issuers recently received their forms back from the SEC with a request for minor changes. Before approval, these issuers must address the criticisms and resubmit the forms, undergoing at least one more review round. This process could attract more institutional investors.
The CFTC chair recently commented that between 70% and 80% of cryptocurrencies are not securities, highlighting the need for the CFTC to regulate these assets in line with the Commodities Exchange Act. This stance could end the ongoing debate about whether cryptocurrencies are better classified as commodities or securities, providing much-needed regulatory clarity and boosting investor confidence.
Goldman Sachs plans to launch three tokenization initiatives by the end of the year, focusing on U.S. and European markets. Led by tokenization and cryptocurrency enthusiast Mathew McDermott, these initiatives could draw significant institutional interest and investment into the crypto industry.
Lastly, JPMorgan released a report today forecasting a bullish bounce for Bitcoin in August. Despite recent market downturns, the bank remains optimistic about Bitcoin's prospects. The report notes that less downward pressure is expected as the recent wave of cryptocurrency liquidations subsides. JPMorgan has also revised its estimate of the year-to-date crypto net flow from $12 billion to $8 billion to more accurately reflect the current market state.
