The approval of spot Ethereum (ETH) exchange-traded funds (ETF) in the US sets a good tone for the crypto market at the end of 2024’s second quarter. Investors’ eyes are all over how the ETH price will react, how the altcoin market will behave, and what altcoin ETFs might be presented to the SEC in the upcoming weeks. Industry experts shared with Crypto Briefing their insights into June’s outlook.Tristan Frizza, founder of decentralized exchange Zeta Markets, stated that the crypto market will continue with “choppy” action in the short term. However, Bitcoin (BTC) whales are still accumulating BTC, while the beginning of Ethereum ETFs trading might drive demand for ETH up. This paints an optimistic view for the long term in 2024, especially as the ETF approval is likely to ripple positive sentiment throughout the broader marketAdditionally, with the rising speculation on market direction, the market might see an increase in on-chain derivatives trading volume over time. Jag Kooner, Head of Derivatives at Bitfinex, also believes that the approval of the Ethereum ETFs represents a significant milestone for crypto, capable of further integrating digital assets into mainstream finance. Furthermore, it boosts investors’ confidence in the short term.
“The ETF’s approval is expected to boost investor confidence and could lead to a price surge for ETH. The increased liquidity and stability from institutional investments could make ETH a more attractive asset for both retail and institutional investors,” Kooner added.
Marko Jurina, CEO of Jumper.Exchange, highlighted that the US tax payments have been completed, and China is injecting additional liquidity into the Yuan. Moreover, there is an expectation that the European Central Bank (ECB) will cut rates in June or July, amidst persistent inflation in Europe. Notably, crude oil prices have fallen below $80 for the first time since February, which can be seen as a de facto consumer stimulus.
“These factors are converging to create a potentially volatile market environment, especially as we approach the US presidential elections. Consequently, we anticipate increased market interest and a likely positive trend throughout the summer,” Jurina assessed.
On top of a June heated with speculations over the starting date of Ethereum ETF trading in the US, James Davies, co-founder and CPO of Crypto Valley Exchange, expects a “meme coin summer” soon. The memetic-based trading might overflow to the traditional markets, with stocks such as GameStop also receiving significant attention.
“We see a summer containing the pump of meme coins similar to the NFT summer of 2021. As a result, we will probably see some retail money pulled from other high-yield projects temporarily,” explained Davies. He added that another major event for crypto in June includes the continued arrival of more traditional market players into the space.
Darren Franceschini, co-founder of Fideum, was quick to state that the market “can buckle up for a bright June,” as technical indicators from the crypto market point towards a rebound.
“Innovation in the blockchain space keeps pushing forward, and who knows, maybe June will see some exciting new developments. The broader economy looking good too – the Fed’s taking a measured approach with interest rates which could fuel steady growth. Experts are feeling bullish, and June might just be the turning point for a fantastic summer for both crypto and the world’s finances.”
Year of electionsTwo important elections might impact the crypto market in 2024: the elections for the European Parliament and the US presidential elections. The European Parliament elections are close, set to happen between June 6th and June 9th. Jag Kooner, from Bitfinex, highlights that this election is important for shaping future legislation, including policies on cryptocurrencies.
“The elections could see a major shift in the political landscape, with right-wing and populist parties expected to gain substantial ground. This shift could influence regulatory stances, potentially leading to more stringent controls or, conversely, more supportive policies depending on the composition of the new parliament,” added Kooner.
Notably, this has a direct impact on the implementation of the Markets in Crypto-Assets (MiCA) regulation. MiCA aims to create a unified regulatory framework for crypto across the European Union, providing legal clarity and potentially attracting more investment.
“The outcome of the elections will determine the pace and enthusiasm with which these regulations are implemented. A parliament more favorable to crypto could accelerate the adoption of supportive regulations, boosting market confidence. Conversely, a shift towards more conservative policies could introduce new compliance challenges and uncertainty,” stated Bitfinex’s head of derivatives.
Moreover, although set to happen on November 5th this year, the US elections might start impacting the regulatory landscape for crypto already in June. Tristan Frizza, from Zeta Markets, underscored that the market is already considering the effects of a potential Trump win in the upcoming US elections, and that could lead to a more crypto-friendly administration.
