This week is crucial for the crypto market as various news developments will indicate the direction of the industry. From inflation data to legislative changes that could impact the crypto sector, updates on spot Ethereum ETFs and the SEC lawsuit against Ripple are eagerly awaited.
On Wednesday, the release of the US Consumer Price Index data is expected to play a significant role in defining the crypto market’s direction. Analysts anticipate a 0.3% increase in the underlying CPI, up from 0.4% in March. This data is essential for investors seeking reassurance that inflation will not rise significantly, potentially prompting the Fed to make interest rate cuts later in the year.
The SEC’s stance on spot Ethereum ETFs is also a key focus. Forecasts suggesting that the approval of these ETFs is unlikely have caused concern among investors. The regulator recently delayed the review of Galaxy Invesco’s proposed Ethereum ETF, while other firms have made adjustments to their filings due to regulatory scrutiny on crypto staking. Analysts predict that Ethereum’s price could either drop to $2,500 if the ETF is denied or surpass $4,000 if approved.
Additionally, the US Congress is expected to vote on the “Financial Innovation and Technology Act of the 21st Century” (FIT21) before the end of May. This legislation aims to establish jurisdiction over cryptocurrencies in investment contracts, with representatives believing it will solidify US leadership in the global financial system.
Lastly, the SEC vs. Ripple legal case is set to make headlines with both parties filing motions to seal proceedings. This development indicates that a ruling on whether Ripple will face penalties for its XRP sales is nearing. These updates are crucial for understanding the current state of the crypto market and its future direction.