Key Insights:
Ethereum ETFs will finally see the green light on 23 July.
With the debut of Ethereum ETF, crypto markets might see the start of a new altcoin season.
Bitcoin finally managed to hold above $60k and may gain further this week.
Donal Trump seems to have increased his presidency odds after escaping a deadly attack on him.
The US Federal Reserve might not raise any interest rates before the US elections. Chairman Powell seeks to reduce inflation below 2% before any rate cut is announced.
For most of June, Bitcoin ETFs had either zero inflows or negative flows. In July, however, the inflows again rose.
A lot has been going on in the crypto markets lately. Despite the indecisiveness, many factors have been trying to influence the market’s direction. The crypto markets have never been so confusing, from the FED’s neutral interest rates to Donald Trump’s choice of Bitcoin as an asset in the US Strategic Reserves and the fall in crypto ETF inflows.
Despite all the confusion, several positive developments have also taken place. Ethereum ETFs will finally see the light of the day as the SEC has asked for a final round of corrections in ETF applications. On the broader market side, an Altcoin Season is expected to kickoff with several cryptos already witnessing strong bullish sentiments.
This article explores the top 5 things you will see influencing the direction of the crypto markets in July 2024.
Most cryptocurrencies did not experience an alt season this year despite the bull markets. The reasons included the increased dominance of Bitcoin, the memecoin rallies and the AI crypto rally.
However, that will soon change as Ethereum is expected to kick off this bull cycle's altcoin season. With the launch of Ethereum ETFs, the rally in Ethereum could initiate a series of further rallies in several cryptocurrencies.
Below are the top candidates that we have carefully picked as our top choices for the 2024 altcoin season.
Ethereum (ETH)
XRP (XRP)
Dogecoin (DOGE)
Shiba Inu (SHIB)
Ronin (RON)
Stellar (XLM)
Maker Protocol (MKR)
Bitcoin Cash (BCH)
Arweave (AR)
Worldcoin (WLD)
Several among them have already started their rallies, with some gaining up to 40% in a single day.
Bitcoin has again regained its critical levels of $62.5k and $65k as ETF inflows resume and selling by the German government finally ends.
Between 3 and 4 July, Bitcoin broke down below the crucial support level of $60k, causing a subsequent fall to $58.5k. These falls were attributed to investor fatigue and the selling of Bitcoins by governments, miners, and whales.
The last time Bitcoin reached these levels was in March 2024, when a quick profit booking sent the price below $58k, but it quickly recovered.
Former President and US Presidential candidate Donald Trump has hinted that Bitcoin could be made an asset for the US Strategic Reserves.
US Strategic Reserves are the assets that partially back the value of the US Dollar. When the dollar risks a crash, assets from the reserves are sold to stabilize the dollar.
A few days ago, Trump made a Truth Social post highlighting the importance of Bitcoin. According to him, any attempt to undermine Bitcoin would benefit Russia and China directly.
Trump had also expressed his desire that all the remaining Bitcoins, i.e., the next 1.28 million, should be mined in the USA.
Reportedly, Trump is being advised by Vivek Ramaswamy regarding Bitcoin. Ramaswamy also expressed an idea of backing the US dollar with a basket of assets, including Bitcoin.
Former Democratic and independent Presidential candidate Robert F. Kennedy also supported Bitcoin and advised that it should partially back the US dollar.
The minutes of the last US Federal Reserve meeting on 11-12 June are now public. In the last Fed meeting, Federal Reserve Chairman Jerome Powell mentioned that it was essential for inflation to fall below 2% before considering any rate cut.
High and sustained interest rates have sucked away buying power from the hands of the retail crypto buyers. Although a rate cut was expected around June 2024, the Fed kept the rates neutral. After this, there are very few chances of a rate cut before the US elections on 5th November.
June was the worst month for Bitcoin ETFs to date. Barring a few initial days of strong inflows, the rest of the month saw severe outflows. Towards the end of the month, the ETFs again saw inflows, but they were minimal.
The cause of the inflows was the stagnant Bitcoin price. Many ETF buyers who invested in the assets before the Bitcoin halving were forced to sell once the market price exceeded their buying price.
However, the month of July has proven highly beneficial for Bitcoin. With strong ETF inflows resuming again, the top crypto has already exceeded past resistances at $62.5k and $65k. As the ETFs see more inflows, we expect Bitcoin to form a new ATH soon.
Ethereum ETFs might see a lukewarm launch if the current market conditions persist. This is because, until now, the price of Ethereum has not fallen on the hopes that an ETF launch might be imminent. Once the ETFs launch, the markets are likely to enter a profit-booking mode.
If the profit booking mode pulls Ethereum's price below $3000, i.e., pre-ETF approval levels, it will discourage new investors from investing in ETFs. All of these combined could make the ETF debut a bit lukewarm.
Ethereum ETFs were the most awaited event in 2024 after the Bitcoin Halving event. Though the SEC approved Ethereum ETFs on 30 May this year, the individual S-1 applications were returned multiple times for corrections.
Finally, the ETFs are expected to be launched by next week, i.e., 23 July. With their approval, Ethereum is expected to kick off the 2024 Alt Season.
Rumours have it that the SEC has even approved three Ethereum ETFs, which might start trading as soon as Tuesday.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.