On Wednesday, Bitcoin (BTC) fell by 1.37%. BTC partially reversed its gains of 1.56% from Tuesday, ending the day at $16,654. It should be noted that BTC posted its eighth loss out of eleven sessions while it ended the day below $17,000 for the sixth time since 2020.
A mixed start to the day saw BTC surge to an early high of $17,002. However, when BTC broke below the first major resistance level (R1) at $17,164, BTC dropped to a mid-afternoon low of $16,347. BTC fell through the first major support level (S1) at $16,575 before ending the day at $16,654.
The fallout from the FTX crash continued to grip the cryptocurrency market in the middle of the week. After BlockFi and Liquid, Genesis Trading is the next crypto platform to freeze redemptions due to the FTX drop. The twins also joined a growing list that may or may not qualify for recovery fund assistance.
News broke this morning that Singapore’s state investment fund Temasek has written off $275 million in FTX exposures. However, unlike many other investors, the delisting will not affect Temasek’s liquidity profile. Temasek has a portfolio net worth of S$403 billion as of March 2022, which is equivalent to US$293 billion.
While Temasek may not retract a $275 million writedown, there will be questions about its level of due diligence. The downgrade could force the Monetary Authority of Singapore (MAS) to crack down on the cryptocurrency industry and make it difficult for new players to enter the republic.
US lawmakers are gearing up for the cryptocurrency market’s Vacation campaign, and other governments are likely to follow suit. The Senate Banking Committee is following in the footsteps of the Financial Services Committee with plans to hold a hearing on FTX, which will include Alameda and Bankman Fried.
Later today, US economic indicators may influence, although we expect more signs of contagion to overshadow the impact of today’s data. The weekly jobless claims and the Philly Fed Manufacturing Index will attract interest.
According to FedWatch, the probability of a 75 basis rate hike in December is 14.6%. Better-than-expected US retail sales figures failed to moderate bets on the Fed’s pivot, suggesting that FOMC members will have to speak up.
FOMC members Mester, Pollard and Bowman will speak today. Hawkish talks could test support for the NASDAQ Composite Index and the crypto market. After falling 1.54% on Wednesday, the Nasdaq mini index is up 0.50 points this morning.