This Weeks Top Cryptocurrency News Ethereum ETH Aims for Approval Release of US CPI Data

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Source: Niu Guolu Yao


This week, significant news has attracted the attention of cryptocurrency investors and enthusiasts. The possible approval of Ethereum spot exchange-traded funds (ETFs), the upcoming release of U.S. CPI data, and other major events will impact the cryptocurrency market.
These developments could have far-reaching effects, prompting market participants to remain vigilant and informed.
Significant crypto legislation faces crucial congressional vote
This week, the U.S. Congress will vote on HJ Res. 109, which aims to overturn the controversial SEC Staff Accounting Bulletin 121 (SAB 121). The weekly schedule of Steve Scalise, the House Majority Leader, indicates that the resolution could be deliberated on Tuesday or Wednesday.
The bulletin requires financial institutions to list customers’ digital assets on their balance sheets. Critics argue that this regulation would exclude digital assets from the U.S. financial system.
Both the House of Representatives and the Senate approved the repeal of SAB 121 in May. However, President Joe Biden vetoed the bill, emphasizing his administration’s commitment to not support “measures that harm consumer and investor welfare.” Many industry experts and investors consider this vote to be crucial for the entire crypto industry.
Approval for Ethereum spot ETF imminent
Market observers are eagerly anticipating the approval of Ethereum spot exchange-traded funds (ETFs). After several asset management companies updated their S-1 forms, experts predict that these ETFs could be launched soon.
James Seyffart and Eric Balchunas, ETF analysts at Bloomberg Intelligence, stated that these ETFs “could go live later next week or the week of July 15.” Nate Geraci, the President of ETF Store, expressed a similar view.
“If a spot ETH ETF doesn’t trade within the next two weeks, that would be shocking. Late next week is possible, but I think the week of July 15 is more likely,” he pointed out.
The SEC’s approval process remains crucial for these ETFs to commence trading. While the SEC has approved the 19b-4 form, issuers still need approval for the S-1 form to proceed.
Despite optimism regarding the eventual approval of these ETFs, the price of ETH has significantly declined since the preliminary approval in late May. According to data from BeInCrypto, ETH is currently trading at $2,887, a decrease of approximately 26% since the initial approval date.


U.S. CPI data release and its market impact
Another significant event this week is the release of the U.S. Consumer Price Index (CPI) data on July 11. The CPI data for May, which showed no growth on a month-on-month basis, eased inflation concerns to some extent.
Forecasts from the Federal Reserve Bank of Cleveland indicate that the overall CPI inflation rate for June will be 0.08%, and the core CPI inflation rate, excluding food and energy, will be 0.28% on a monthly basis. While these estimates are not always accurate, they typically provide an indication of the level of monthly inflation that could be reached.
Nevertheless, the Federal Reserve will still closely monitor the upcoming data to gauge inflation trends and make prudent policy decisions. The central bank will consider this data at its next policy meeting on July 30-31.
Lower inflation data could indicate economic stability and potentially boost investor confidence, leading to capital inflows into riskier assets such as cryptocurrencies. Conversely, if inflation exceeds expectations, the Federal Reserve may choose to maintain or raise interest rates, injecting uncertainty into the market.
Due to the volatility of cryptocurrencies, their prices may experience significant changes due to these economic indicators. Therefore, investors should actively monitor CPI data and the Federal Reserve’s decisions to guide the market.
Proposal for reduced supply of Jupiter
Jupiter, a decentralized exchange (DEX) based on Solana, is proposing significant changes to its token economics by suggesting a 30% reduction in the total supply of its native token, JUP. The proposal, shared by anonymous co-founder Meow, includes a voluntary 30% reduction in token allocation to the team and a corresponding decrease in Jupuary issuance. The governance vote for this proposal will take place around July.
Meow emphasizes that these changes are possible because Jupiter does not have direct investors, allowing the team to take bold measures to optimize the platform’s token economics. The proposed changes aim to address high emission levels, streamline the platform’s financial structure, and involve the community more deeply in Jupiter’s long-term vision.
Release and upgrade of Vela V2
Vela, the native perpetual DEX on Arbitrum, will launch its Vela V2 on July 8. This version brings upgraded token economics, new trading competitions, and enhanced features to the platform.
Vela V2 includes flexible ownership options, governance voting, and a simplified staking page. Additionally, to incentivize participation and reward active users, Vela V2 will introduce a 500,000 ARB prize pool in the third season of their grand competition.
Unlocking of Xai and other major tokens this week
Xai, a Layer 3 (L3) solution designed for AAA games, will unlock nearly 200 million XAI tokens on July 9. The tokens are valued at approximately $55.18 million, accounting for 71.59% of its circulating supply. As a result, this token unlocking has sparked discussions within the cryptocurrency community about its potential impact on the price of XAI.
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