U.Today – The cryptocurrency market is gearing up for a possible trend reversal in July, which will be driven by several crucial factors. Below are five important indicators to keep an eye on:
Possible rate cuts by the Federal Reserve
According to recent rumors, the Federal Reserve could cut interest rates as early as September and again in December. Markets will gain liquidity with these cuts, according to analysts, and cryptocurrencies could benefit from another positive CPI data.
Progress in ETF S-1 filings
Ethereum ETF issuers recently received their S-1 forms from the SEC, with a request for minor changes. Before being approved, these issuers must respond to the criticisms and resubmit them, passing at least one more round of review. This is a result of attracting more institutional investors.
The CFTC Chairman's stance on cryptocurrency regulation
According to recent comments by the CFTC Chairman, 70-80% of cryptocurrencies are not securities, underscoring the need for the CFTC to regulate these assets under the Commodity Exchange Act. This position may put an end to the long-standing discussion about whether cryptocurrencies are better classified as commodities or securities, which would bring much-needed regulatory clarity and improve investor confidence.
Goldman Sachs Tokenization Projects
By the end of the year, Goldman Sachs wants to introduce three tokenization initiatives, with an emphasis on the US and European markets. These initiatives, led by tokenization and cryptocurrency enthusiast Mathew McDermott, have the potential to attract significant institutional interest and investments in the cryptocurrency business.
JPMorgan's optimistic outlook
In a report published today, JPMorgan forecasts a bullish rally for Bitcoin in August. Despite recent market declines, the bank remains optimistic about Bitcoin’s prospects. The analysis emphasizes that less downward pressure is anticipated as the recent wave of cryptocurrency liquidations fades. To better reflect the current state of the market, JPMorgan has also lowered its estimate of the year-to-date net cryptocurrency inflow from $12 billion to $8 billion.
This article was originally published on U.Today
