Key Highlights From the Crypto World This Week
1. Unexpected US CPI Drop Boosts Crypto Market Sentiment
The US Bureau of Labor Statistics reported June’s unadjusted core CPI annual rate at 3.3% (expected: 3.4%), marking the lowest level since April 2021. Key figures:
– Monthly CPI: -0.1% (vs expected +0.1%)
– Core CPI monthly: +0.1% (lowest since August 2021)
Market analysts suggest this economic softening increases September Fed rate cut probability to 70%. While equities rallied, crypto markets showed muted response, though BTC volatility spiked 5%. 👉 Discover how market trends affect your portfolio
2. Citi Forecasts Aggressive Fed Rate Cuts Through 2025
Citi Research predicts:
– 8 consecutive 25-basis-point cuts starting September 2024
– Target rate reduction from 5.25%-5.5% to 3.25%-3.5% by July 2025
– Driven by cooling labor markets and inflation approaching 2% target
Fed Chair Powell acknowledged progress but emphasized data-dependent decisions.
3. Trump to Speak at Bitcoin 2024 Conference
The former US president will address Nashville’s Bitcoin conference, causing schedule reshuffles. Paradigm-funded polling reveals:
– 13% of reluctant GOP voters view Trump more favorably due to crypto stance
– 60% of respondents want Congressional crypto regulation
– 28% have crypto exposure (higher among young/male/non-white demographics)
4. GOP Platform Embraces Pro-Crypto Policies
The 2024 Republican platform includes:
– Opposition to CBDCs
– Support for self-custody rights
– Protection of Bitcoin mining
– Commitment to “defend the right to transact free from government surveillance”
5. Germany Completes $2.9B Bitcoin Sell-Off
After 24 days of sales:
– 49,858.7 BTC liquidated
– Average price: $58,480
– Total proceeds: ~$2.915B
Emerging Market Developments
6. Ethereum ETFs Likely Launching Mid-July
Key indicators:
– Invesco Galaxy, BlackRock, and Franklin submitted 8-A12B filings
– The ETF Store’s Nate Geraci predicts July 15 week launch
– Bloomberg’s Eric Balchunas suggests July 18 approval date
– ETH price dropped 20% since May’s surprise 19b-4 approvals
7. Solana ETF Applications Gain Momentum
Cboe submitted 19b-4 forms for VanEck/21Shares SOL ETFs, arguing Solana’s anti-manipulation resilience. Approval outlook:
– Final deadline: March 2025
– Election impact: Biden win = unlikely approval; Trump win = possible
8. Goldman Sachs Expands Tokenization Plans
The investment giant will launch:
– 3 tokenization projects by EOY 2024
– First US-based project (money market funds/real estate)
– Cash-settled crypto derivatives
– Bitcoin ETF market participation
Security & Innovation Updates
9. Crypto Hacks Surge to $1.38B in H1 2024
TRM Labs reports:
– 110% increase from 2023’s $657M
– Top 5 attacks accounted for 70% of losses
– Primary attack vectors: private key/mnemonic leaks
– Largest theft: $300M+ from Japan’s DMM Bitcoin
10. Vitalik Proposes Ethereum 51% Attack Defenses
At ETHCC, Buterin emphasized:
– Automated response mechanisms
– Validator fork-switching protocols
– Enhanced zk-EVM and quantum resistance
– Protocol simplification for better UX
Notable Funding Rounds
| Project | Sector | Amount Raised |
|---|---|---|
| Rome | Solana Sequencer | $9M |
| Ampleforth | Flatcoin | $1M |
| Term Finance | Lending | $5.5M |
| idOS | Web3 Identity | $4.5M |
| Dora | Multi-chain Search | $5.5M |
👉 Explore investment opportunities in Web3
Frequently Asked Questions
Q: How might Fed rate cuts affect crypto markets?
A: Historically, lower rates increase risk asset appeal. Crypto could benefit from capital rotation, especially with institutional products like ETFs gaining traction.
Q: What makes Solana ETF approvals uncertain?
A: SEC hasn’t classified SOL as commodity (like BTC/ETH). Political leadership changes could dramatically alter approval prospects.
Q: Why are tokenization projects gaining traction?
A: Blockchain enables fractional ownership, 24/7 settlement, and transparency for traditionally illiquid assets like real estate.
Q: How serious are 51% attack risks for Ethereum?
A: While theoretically possible post-Merge, the required stake makes it economically impractical. Vitalik’s proposals aim to further mitigate residual risks.
Q: When will Ethereum ETF trading begin?
A: Analysts expect mid-July launches following final SEC approvals, with potential price volatility around the event.
Q: What drove Germany’s Bitcoin sell-off?
A: Likely budgetary rebalancing after seizing coins from criminal operations. The staggered sales minimized market impact.