This week key US CPI data release, and significant crypto legislation votes could shake up the market.
This week is packed with important events for crypto fans. Key happenings include the potential approval of Ethereum ETFs, upcoming US CPI data, and significant legislative moves. These events could have wide-reaching effects, prompting market participants to stay alert and informed.
US lawmakers will vote on H.J. Res. 109, aimed at overturning the controversial SEC Staff Accounting Bulletin 121 (SAB 121). This vote might happen on Tuesday or Wednesday, according to House Majority Leader Steve Scalise’s schedule. SAB 121 requires financial institutions to list customers’ digital assets on their balance sheets, which critics say keeps digital assets outside the US financial system.
Both the House and Senate approved the repeal of SAB 121 in May, but President Biden vetoed it. He emphasized protecting consumers and investors. Many experts see this vote as crucial for the crypto industry.
Market watchers are excited about the potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs). Experts predict these ETFs could launch soon, possibly as early as next week. Bloomberg Intelligence’s ETF analysts, James Seyffart and Eric Balchunas, suggest these ETFs might list next week or the week of July 15. Nate Geraci, president of ETF Store, also expects spot ETH ETFs to start trading within two weeks.
The SEC’s approval process is key for these ETFs to start trading. Although the SEC has approved the 19b-4 forms, issuers still need their S-1 forms approved. Despite the optimism, ETH has dropped significantly since the preliminary approval date, now trading at $2,887—a roughly 26% decrease since late May.
The US Consumer Price Index (CPI) data release on July 11 is another critical event. May's CPI data showed no month-to-month increase, easing some inflation worries. Projections suggest a 0.08% increase in headline CPI inflation for June, with core CPI inflation at 0.28%. The Federal Reserve will closely monitor these figures to gauge inflation trends for their next meeting on July 30-31.
Lower inflation could indicate economic stability, boosting investor confidence in riskier assets like cryptocurrencies. Conversely, if inflation exceeds expectations, the Fed may hold or raise interest rates, creating market uncertainty. Cryptocurrencies, known for their volatility, could see significant price changes in response to these economic indicators.
Jupiter, a Solana-based decentralized exchange (DEX), plans to reduce its native token, JUP, supply by 30%. The proposal includes a 30% cut from the team’s allocated tokens and a reduction in emissions. This governance vote will happen in July, aiming to streamline the platform’s finances and engage the community more deeply.
Meow, the pseudonymous co-founder, stated that these changes are possible because Jupiter has no direct investors. The proposal aims to tackle high emissions levels and optimize the platform’s tokenomics.
Vela, an Arbitrum-native perpetual DEX, will launch Vela V2 on July 8. This update brings new tokenomics, a trading competition, and improved features. Vela V2 offers flexible vesting options, governance voting, and a simplified staking page. Additionally, a 500,000 ARB prize pool will be part of Grand Prix Season 3 to incentivize participation and reward users.
Xai, a layer-3 solution for AAA gaming, will unlock nearly 200 million XAI tokens on July 9. This amount, worth about $55.18 million, is 71.59% of its circulating supply. This unlock has sparked discussions about its impact on XAI’s price. Aptos will also unlock a significant amount of its token, APT, on July 12. This is 2.49% of its circulating supply, valued at around $62.88 million.
Other projects like Immutable (IMX) will also have token unlocks in this period. Investors should monitor these events closely as they could impact token prices.
