In the ever-evolving world of cryptocurrencies, recent developments have impacted the price of Ethereum (ETH) and Bitcoin, highlighting the need for increased trust and security within the industry. From a short-term correction in Ethereum’s price to China’s PPI data indicating a potential end to the liquidity-tightening cycle, the crypto market continues to captivate investors and analysts alike.

ETH Price Correction and Short-Term Outlook:
Since reaching its peak on June 15, the price of Ethereum has experienced a decline, leading experts to view it as a short-term correction. This downtrend was triggered when the price was rejected at a significant resistance level. Various technical indicators are currently undecided, with the Relative Strength Index (RSI) providing an undetermined reading. Consequently, the short-term outlook for ETH remains bearish. However, if ETH manages to surpass a specific level, it could signal a bullish trend reversal. The anticipated completion of this correction is expected to fall within the range of $1,760 to $1,800.

Bitcoin’s Stability Amidst China’s PPI Data:
Bitcoin, on the other hand, has remained relatively stable above $30,000. This is particularly noteworthy considering the significance of China’s Producer Price Index (PPI) data. The data revealed a sharp decline, with a 5.4% year-on-year fall in June, the largest drop in seven years. This decline potentially signifies lower export prices and deflationary pressures within the global economy. While western central banks grappling with rising inflation could benefit from this deflation, the market did not respond positively. Bitcoin and S&P 500 futures showed limited direction, while the US dollar index experienced a slight increase. Investors are cautious, waiting for bond yields to peak before speculating whether bitcoin will rise again. The direction of yields may hinge on the upcoming US CPI data, scheduled for release on Wednesday.

Industry’s Drive for Trust: SOC 2 Type 2 Audits:
To mitigate concerns over security and foster trust, crypto companies are actively pursuing SOC 2 Type 2 audits. These audits verify the security and data-handling capabilities of these companies. Eric Lister, the director of service delivery at audit firm A-LIGN, explains that these audits scrutinize policies, procedures, and controls that safeguard customer data and assets. Successfully passing the audit helps provide assurance to customers and regulatory agencies. Prominent crypto companies like Nexo and Crypto.com have already undergone and passed these audits. It is essential to note that while the audit showcases effective controls, it does not directly improve a business’s underlying systems.

The current state of the crypto market showcases a short-term correction for Ethereum and the stability of Bitcoin amidst China’s PPI data. As investors await the outcome of the US CPI data, the bond yields will play a crucial role in shaping future market trends. In the meantime, crypto companies are proactively adopting SOC 2 Type 2 audits to bolster trust and address security concerns. These audits highlight the industry’s commitment to providing secure and reliable services while fostering confidence among customers and regulatory bodies.

Disclaimer: The information provided in this article is based on market analysis and should not be considered financial advice. Cryptocurrency investments are highly volatile, and readers should conduct their research and consult with financial professionals before making any investment decisions.