Market Analysis Beginner

Market Signals June 25th, 2024: Will the ETH Spot ETF Ignite a Crypto Rally?

Reading Time: 4 minutes

After a brief rebound earlier last week fueled by MicroStrategy’s purchase of additional coins, BTC and the altcoin have resumed their downward trajectory. BTC’s initial recovery to around $65,900 raised hopes that the $65,000 level would be a strong support.

However, this optimism quickly dissipated. BTC lost momentum and plunged below its critical support levels. It swiftly breached the $64,000 and $62,500 support levels, leaving the next closest support at $60,150. If this level is breached, it could trigger further market destabilization.

BTC’s correction has caused a domino effect in the altcoin market, resulting in widespread sell-offs. As a result, the crypto market has been painted red this week. The upcoming launch of the ETH spot ETF on July 2nd sparked hope for a potential reversal of the current market trend. The ETF could be a positive catalyst, attracting new investors and boosting overall market sentiment.

The Pintu Academy team has compiled valuable insights from several crypto projects. We analyze that information to determine its potential impact on various asset prices. Will these be bullish or bearish catalysts? Find out in the following article.

It should be noted that all information in this Market Signal is intended for educational purposes, not as financial advice.Do your own research before making any financial decisions!

Drift Protocol (DRIFT) ➡️ Bullish 🚀

In a recent development, Drift Protocol has announced a partnership with Ondo Finance to integrate real-world assets (RWAs) into the Solana DeFi ecosystem. Through this collaboration, Drift has introduced a staking feature and integrated Ondo’s USDY as collateral.

Drift expects that using USDY as collateral will increase trading volume and liquidity on its platform. Users will no longer have to choose between earning yield on their stablecoins or using them as collateral for trading. They can now earn a yield on their collateralized assets while simultaneously using them for trading.

In addition to the expected improvement in performance metrics, Drift Protocol also gains exposure to the RWA sector. This combination could be a positive catalyst that drives up the price of DRIFT in the short term.

Fantom (FTM) ➡️ Bullish 🚀

Fantom is one of the tokens that had bullish potential this week. Last weekend, Fantom announced the Sonic Labs Innovator Fund, a 200 million FTM incentive to accelerate the migration of existing protocols in the Fantom ecosystem for the launch of Sonic. At current FTM prices, the incentive is equivalent to $100 million.

Learn more about Fantom Sonic and its price analysis in the following article.

The incentive will be distributed to native application grants, strategic grants to dApps, and first-class infrastructure tools and partners for developers and users. The program will also run in conjunction with the S airdrop incentive.

Based on similar initiatives in the past, funding incentives have spurred the development of innovative dApps on a network. This means that the more new dApps on the Sonic network, the more users are expected to be attracted.

Ultimately, user growth will be directly proportional to the development of TVL and the Sonic ecosystem. This is expected to be a positive catalyst that will drive up the price of the FTM token.

Ethereum (ETH) ➡️ Uncertain⚖️

The potential approval of Ethereum spot ETFs will be a crucial sentiment driver for the coming weeks. On June 21, seven investment managers who filed for Ethereum spot ETFs amended their registrations with the SEC. It leads to expectations that Ethereum spot ETF launches could occur in early July.

Bloomberg ETF analyst Eric Balchunas predicts that Ethereum spot ETFs could launch as early as July 2, 2024. He believes that amended basically a wrap, and the ball is in the SEC’s court now.

The crypto community is divided on the potential impact of Ethereum spot ETFs. Some believe that it would be a major development for the crypto industry and could significantly positively impact the prices of Bitcoin and other altcoins.

Others argue that the impact of Ethereum ETFs will be relatively limited because the inflows into ETF products will not be as significant as for Bitcoin ETFs. There is also the possibility that the launch of Ethereum ETFs could be a “sell the news” event, which could trigger a price correction for ETH.

Given these two possibilities, the price of ETH is likely to be volatile in the short term.

Optimism (OP) & AltLayer (ALT) ➡️ Uncertain⚖️

Optimism (OP) and Altlayer (ALT) protocols are scheduled to unlock tokens this week. On June 30, 2024, OP will unlock 31 million tokens, representing approximately 2.88% of the total circulating supply. This equates to $56 million worth of tokens that will be released to investors and the Optimism core team.

Meanwhile, on June 25, 2024, ALT will unlock 105 million tokens, representing approximately 6.92% of the total circulating supply. At ALT’s current valuation of $0.17, this unlock equals $20.32 million.

The increased token supply could trigger volatility in the short-term prices of OP and ALT. Moreover, the current bearish market conditions may amplify the impact of increased supply, as demand may not match the new supply.

Hitesthi.eth a crypto analyst, has shared an analysis on Twitter suggesting that the liquidity spread on Binance is currently poor. If investors sell 5% of their monthly unlocked tokens, this could lead to selling pressure on assets like OP, ARB, APT, and SUI of up to 30-70%.

Crypto Performance Over the Past Week

Here are the best and worst performing cryptos on Pintu:

Cryptocurrencies With the Best Performance

  • Delysium (AGI): 🔼56,14% (Rp 3.902)
  • Rats (Rats): 🔼53,46% (Rp 1,80)
  • Fetch.Ai (FET): 🔼35,47% (Rp 27.386)

Cryptocurrencies With the Worst Performance

  • Chainflip (FLIP): 🔽30,20% (Rp 22.742)
  • Vertex Protocol (VRTX): 🔽25,43% (Rp 1.744)
  • GSwift (GSWIFT): 🔽24,06% (Rp 2.435)


Leave a Reply

Your email address will not be published. Required fields are marked *