Crypto newsletter: Bull-run brakes ahead of weekend

This week was positive overall for the cryptocurrency market as prices have managed to retain all the gains realized over the last few weeks. In recent days, major cryptocurrencies have been consolidating at high price levels waiting for another catalyst for a bigger move. However bullish sentiment dampened slightly after US lawmakers presented stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act which introduces a series of strict measures for stablecoins and their issuers. It aims to “protect consumers from emerging risks from emerging payment instruments”. Under new regulation it would be unlawful for any company or individual to issue stablecoins without approval from the Federal Reserve Bank, the Federal Deposit Insurance Corporation (FDIC), and other relevant banking bodies to be able to create such digital assets. Many investors believe that new regulations could be a step backwards for the crypto industry in the US. The capitalization of all digital assets in circulation increased to 576 billion, while an average daily trading volume is registered at $140 billion. Bitcoin's market dominance increased to 62.3%.

S&P Dow Jones to make its own Crypto Asset Index

 

Bitcoin seems to be attracting more and more companies as it continues to trade neat its all-time high, peaking over 150% in the past year. Cryptocurrencies enjoyed great interest from large financial institutions in 2020 including S&P Global Inc.
S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, announced yesterday that it will launch cryptocurrency indices in partnership with crypto data provider Lukka in 2021. S&P will provide the branding of the index, while Lukka will handle the data. Company plans to launch indices for more than 550 of the top traded coins and clients will be able to work with them to create customized indices.

Ripple breaks below lower limit of the triangle formation

Ripple been trading in an upward trend recently. However, upward momentum has clearly slowed down as of late. Looking at the D1 time frame, we can see that Ripple failed to break above the local consolidation range at 0.6788, signaling that the correction move may be on the cards. Today price break below the lower limit of the triangle formation.

Looking at the H4  time frame, we can see that price is testing 50 SMA (green line). Should sellers manage to b reak below it, then declines could deepen. In such a scenario, the $0.45 handle could be the first target for market bears.