Cryptocurrency markets are bracing for a week filled with significant events, economic data releases, and token unlocks that could influence price movements and investor sentiment. From new exchange listings and blockchain upgrades to crucial economic reports and corporate earnings, market participants are keenly watching for potential catalysts.
Here are eight important things to watch on July 10. Trading of JPY Coin (JPYC) is expected to start on Binance, which would greatly enhance its accessibility and expected trading volume. The Polygon Proof-of-Stake (PoS) blockchain plans to activate the Heimdall hard fork on mainnet. We believe this upgrade could make great strides towards improving network performance as well as security. Lynq is planning to launch a real-time, interest-bearing digital-asset settlement network for institutions. This forward-thinking action will simplify transactions and bring more institutional capital into the crypto space. Binance Futures is set to introduce its PUMP perpetual contract at 07:30 UTC, offering traders new opportunities for leveraged trading.
Meanwhile, Spot Bitcoin (BTC) Exchange Traded Funds (ETFs) are still generating record volume. NET FLOWS Daily net flows for these ETFs were the highest ever at $215.7 million, taking the cumulative net flow to a record $50.13 billion. This record inflow shows continued institutional and retail demand for Bitcoin as an investment asset.
Ethereum's staking ecosystem shows positive signs. In a seventh straight month, the Ether CESR Composite Staking Rate rose again — this time by 22 basis points to 3.19%. This increase is indicative of increasing trust in Ethereum’s proof-of-stake mechanism and the Ethereum network’s long-term potential.
That’s particularly true given trading activity on decentralized exchanges. In the Asian morning hours on July 10, total open interest on Hyperliquid, a decentralized derivatives exchange, eclipsed $17 million. This increase indicates a pretty heated market for leveraged trading.
Looking forward, next week is going to be pivotal as there are many important economic indicators and corporations releasing earnings. Statistics Canada’s June employment data, to be released on July 11, should give us a better idea of what’s happening with the country’s economic engine. The Singapore High Court will now hear WazirX’s Scheme of Arrangement on July 14. In doing so this represents a big move for the Indian crypto exchange.
July 15 will see multiple token unlocks. Alchemist recently announced the release of their staking update, where ALCH token holders will have the ability to stake their ALCH. Starknet will be unlocking 3.79% of its current circulating supply (~$15.69m). On the other hand, Fasttoken will unvest 4.64% of its circulating supply – $88.8 million worth. Depending on how much is unlocked, these releases have the power to dramatically shift the supply and demand balance for these tokens.
So later in the month when the Fortune 500 corporations release their earnings reports, we can expect this news. PayPal Holdings will report its earnings before the market opens on July 29. Coinbase Global and Reddit aren’t far behind, joining them in releasing their earnings after-market on July 31. These disclosures would help increase accountability and transparency for firms operating in rapidly growing areas like crypto and fintech partners.
Morning market analysts are weighing in on the bullish current environment as well. As QCP Capital recently pointed out, the increased volatility was the result of a perfect storm of factors coming together.
"With a reignited trade war, a hawkish Federal Reserve, and tightening liquidity, volatility is likely to spike. Macro catalysts are lining up—so buckle up for a wild ride." - QCP Capital
The confluence of exchange listings, blockchain upgrades, economic data, and corporate earnings suggests a potentially volatile and eventful week for the cryptocurrency market. This is something investors and traders will be keeping a close eye on to better understand the overall market sentiment and find new opportunities within the market.
As such, the forthcoming listing of JPYC on Binance is a historic one. JPYC is a stablecoin pegged to the value of the Japanese Yen. Given the Binance Exchange’s prominence, its addition on such a major exchange would greatly increase SCT’s adoption and utility. Stablecoins serve an important function in the crypto ecosystem, offering a stable store of value and serving as the grease that allows crypto trading to occur.
With this Heimdall hard fork on the Polygon PoS blockchain, Polygon aims to make the network faster, more performant and secure. Hard forks are the most impactful upgrades, which can add new functionality to the network and solve previous challenges. If this hard fork is successfully implemented, it will make Polygon an even more attractive scaling solution for Ethereum.
Lynq can improve this process to make settlement more efficient and transparent. This significant development would surely attract many more institutional investors in to the digital asset space.
Binance Futures’ launch of the PUMP perpetual contract is a testament to the increasing demand for these leveraged trading products. If traders believe asset prices will fall, they can short-sell perpetual contracts. This salient feature smoothens out the cashflows and provides the investor greater flexibility with substantially higher potential returns.
These record positive net flows into Spot Bitcoin ETFs highlight the wave of institutional interest that Bitcoin is currently experiencing. These ETFs provide a more regulated and easy to use option for investors. Because they let you get exposure to Bitcoin without having to own the asset itself.
The increase in the Ether CESR Composite Staking Rate is a positive signal of growing confidence in Ethereum’s new proof-of-stake consensus mechanism. In Ethereum 2.0, staking is the act of locking up ETH tokens to help secure the network and earn rewards in return. A greater staking rate indicates that a larger share of ETH holders have faith in the long-term success of Ethereum.
The upcoming economic data releases and corporate earnings reports will provide valuable insights into the broader economic landscape and the performance of companies involved in the crypto and fintech sectors. Negative or positive reports can sway market sentiment and set investor behavior.
In both of these projects, the unlocks that are scheduled for July 15 would greatly change the supply and demand equation for the respective tokens. Token unlocks are events that release previously locked tokens into circulation. This increase in available or supply can increase competition and put downward pressure on prices.
The Singapore High Court hearing on WazirX’s Scheme of Arrangement is a landmark situation for the beleaguered Indian crypto exchange. Depending on this hearing’s outcome, it may greatly affect how WazirX continues to operate and its relationship with Binance.
The developments described above — on their own or together — could all be positive, negative, or somewhere in between for the cryptocurrency space. Relatively positive news – like successful blockchain upgrades around the globe, or robust ETF inflows – would artificially improve market sentiment and push prices upward. On the flip side, adverse developments like regulatory issues or underwhelming earnings announcements might lead to sell-offs and price corrections.
The heightened volatility forecasted by QCP Capital further underscores the critical need for effective risk management in today’s market landscape. Traders and investors will need to be ready for increased price volatility and take more active positions against potential price swings.
This is mainly due to a wave of institutional interest in Bitcoin and Ethereum. As a whole, this trend points to these cryptocurrencies becoming more adopted within the existing financial ecosystem. Such a trend would arguably result in increased stability and maturity in the crypto market over the long-term.
The emergence of new products and services, such as Lynq's settlement network and Binance Futures' PUMP perpetual contract, reflects the ongoing innovation and development in the crypto space. Each of these advances has potential to bring new users and new investment into the market.
The growing institutional interest in Bitcoin and Ethereum suggests that these cryptocurrencies are becoming increasingly integrated into the traditional financial system. This trend could lead to greater stability and maturity in the crypto market over time.
The emergence of new products and services, such as Lynq's settlement network and Binance Futures' PUMP perpetual contract, reflects the ongoing innovation and development in the crypto space. These developments could attract new users and capital to the market.
