Cryptocurrencies set for 'bright June', industry experts say

The approval of spot ethereum (eth) exchange-traded funds (ETFs) in the US sets a good tone for the cryptocurrency market at the end of the second quarter of 2024. Investors' eyes are on how will the eth price react, how the altcoin market will behave, and which altcoin ETFs could be filed with the SEC in the coming weeks. Industry experts shared with crypto Briefing their thoughts on the outlook for June.

Tristan Frizza, founder of decentralized exchange Zeta Markets, said the cryptocurrency market will continue to see “choppy” action in the near term. However, bitcoin (btc) whales are still accumulating btc, while the start of ethereum ETF trading could increase demand for eth. This presents an optimistic long-term view into 2024, especially as the approval of the ETF is likely to impact positive sentiment across the market.

Additionally, with growing speculation about market direction, the market could see an increase in on-chain derivatives trading volume over time.

Jag Kooner, head of derivatives at Bitfinex, also believes that the approval of ethereum ETFs represents an important milestone for cryptocurrencies, capable of further integrating digital assets into mainstream finance. In addition, it increases investor confidence in the short term.

“The approval of the ETF is expected to increase investor confidence and could lead to an increase in the price of eth. The greater liquidity and stability of 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 US tax payments have been completed and China is injecting additional liquidity into the yuan. Additionally, there is an expectation that the European Central Bank (ECB) will cut rates in June or July, amid persistent inflation in Europe. In particular, 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 election. Therefore, we foresee greater market interest and a probable positive trend throughout the summer,” Jurina assessed.

In addition to a June heated by speculation over the start date of ethereum ETF trading in the US, James Davies, co-founder and CPO of crypto Valley Exchange, expects a “summer of meme coins” soon. Memetic-based trading could spill over into traditional markets, with stocks like GameStop also receiving significant attention.

“We see a summer containing a meme coin bomb similar to the nft summer of 2021. As a result, we will likely see some retail money temporarily withdrawn from other high-yield projects,” Davies explained. He added that another major event for cryptocurrencies 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 prepare for a bright June” as technical indicators in the cryptocurrency market point towards a rebound.

“Innovation in the blockchain space continues to advance and who knows, maybe June will see some interesting new developments. The broader economy also looks good: The Federal Reserve is taking a measured approach with interest rates that could fuel steady growth. “Experts are feeling optimistic and June could be the turning point for a fantastic summer for both cryptocurrencies and the world's finances.”

Election year

Two major elections could impact the cryptocurrency market in 2024: the European Parliament elections and the US presidential election. The elections to the European Parliament are close and will be held between June 6 and 9. Bitfinex's Jag Kooner highlights that this election is important in shaping future legislation, including cryptocurrency policies.

“The elections could mark a major change in the political landscape, with populist and right-wing parties expected to gain substantial ground. “This change could influence regulatory stances, which could lead to stricter controls or, conversely, more favorable policies depending on the composition of the new parliament,” Kooner added.

In particular, this has a direct impact on the implementation of the Cryptoasset Markets (MiCA) regulation. MiCA aims to create a unified regulatory framework for cryptocurrencies across the European Union, providing legal clarity and potentially attracting more investments.

“The outcome of the election will determine the pace and enthusiasm with which these rules are implemented. A more crypto-friendly parliament could accelerate the adoption of supportive regulations, boosting market confidence. On the contrary, a shift towards more conservative policies could introduce new compliance challenges and uncertainty,” said the head of derivatives at Bitfinex.

Additionally, although scheduled to occur on November 5 of this year, the US elections could begin to impact the regulatory landscape for cryptocurrencies as early as June. Tristan Frizza of Zeta Markets stressed that the market is already considering the effects of a possible Trump victory in the upcoming US election, and that could lead to a more crypto-friendly administration.