This week is crucial for the cryptocurrency market, as several news stories will show the direction of industry players.
From inflation data to legislation that would affect the cryptocurrency industry, to updates on Ethereum spot ETFs and the US Securities and Exchange Commission (SEC) lawsuit against Ripple.
US Consumer Price Index on Wednesday
This week, the market will witness the release of US Consumer Price Index data, which could help shape the direction of the cryptocurrency market. Analysts expect the underlying CPI to rise 0.3%, up from 0.4% in March.
“Investors need to have some level of reassurance that inflation will not return higher, and potentially lower, to give the Fed cover for at least one and perhaps two cuts before the end of the year,” Thomas Hayes, president of Great Hill Capital LLC, he said.
The SEC’s Position on Ethereum Spot ETFs
Predictions are growing that exclude the imminent approval of spot ETFs on Ethereum by the SEC. The regulator recently delayed its review of Galaxy Invesco’s proposed Ethereum ETF by 60 days to July 5. Meanwhile, ARK Invest and 21Shares have removed staking from their SEC filings amid a regulatory crackdown on cryptocurrency staking.
Analysts are already predicting that Ethereum will drop to $2,500 if the ETF is denied. However, if approved, ETH could surpass $4,000.
Ethereum ETF Review Dates. Source: X/Bloomberg
In the coming weeks, the SEC will make a decision on several Ethereum ETF proposals. These include BlackRock, Grayscale, Ark Invest and 21Shares, Fidelity, VanEck, Hashdex, Franklin Templeton, Invesco Galaxy Digital and Bitwise.
Cryptocurrency Regulations in the US Congress
House Financial Services Committee Chairman Patrick McHenry said the US Congress could vote on the “21st Century Financial Technology and Innovation Act” (FIT21) by the end of May. FIT21 would impose jurisdiction over cryptocurrencies in investment contracts.
Representatives believe the legislation would solidify U.S. leadership in the international financial system for decades.
“With the floor vote announced today, Congress will take a historic step toward providing a clear regulatory framework for digital asset markets,” McHenry said.
Expected update SEC vs. Ripple
Finally, one of the most iconic legal cases in the cryptocurrency market, SEC v. Ripple, is expected to make headlines. The latest development in the matter is that both parties involved have filed omnibus letter motions to seal the proceedings.
This evidence represents one of the last steps before the judges rule on the case. The goal is to determine whether Ripple should pay a hefty fine for its sales of XRP.
