On Wednesday, Bitcoin (BTC) fell 0.47%. Partially reversing the 2.90% rally from Tuesday, BTC ended the day at $16,845. Notably, BTC failed to revisit $17,000 for the fourth time in five sessions.
A mixed start to the day saw BTC climb to an early morning low of $16,934. However, when BTC failed to reach the first major resistance level (R1) at $17,189, BTC fell to an early noon low of $16,750. Avoiding the first major support level (S1) at $16,536 BTC found late support to narrow the deficit in the session.
FTX news updates and SBF release affect trading volumes
On Wednesday came the news of the extradition of former FTX CEO Sam Bankman-Fried to the United States. The SBF faces life in prison and could offer US lawmakers insight into the inner workings of crypto exchanges and FTX’s relationship with Binance.
Most importantly, regulators are likely to investigate Binance’s involvement in bringing down FTX which left cryptocurrency holders suffering huge losses.
The increased scrutiny on Binance will come at a time when lawmakers are considering financial crime charges. The Senate Banking Committee hearing last week gave investors an idea of what to expect, with Binance being a hot topic in the wake of the FTX crash.
We expect the updates to affect the FTX and SBF, with US economic indicators likely to attract interest later in the session. Today, the Third Quarter GDP and Weekly Unemployment Claims report is due. With the Fed looking to push the unemployment rate towards 5.0%, a sharp increase in the number of unemployed could reduce pressure on the Fed while fueling fears of a recession in the US.