Sam Bankman-Fried Faces Criminal Charges While USD Weakness Supports BTC/USD
- Sam Bankman-Fried arrested in the Bahamas – former FTX CEO faces criminal charges in the United States
- Binance pauses withdrawals for USDC but cooling US CPI overshadows contagion fears
- Cryptocurrency rises with risk assets as BTC/USD rises above prior resistance at support around $17,792.
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Cryptocurrency rises despite indictment against former FTX CEO Sam Bankman-Fried
Bitcoin, Ethereum and other risk assets are holding steady despite the fundamental risks that remain key for price action. With US prosecutors filing criminal charges against former FTX CEO Sam Bankman Fried, a softer US CPI print has assisted in driving digital currency higher.
U.S. CPI Cools for the Second Month in a Row: Yields & DXY Lower, S&P 500 Rises
After the implosion of FTX drove BTC/USD to a fresh yearly low of $15,479 in late November, a move higher allowed prices to stabilize above $17,000. With economic data suggesting that US inflation may have peaked, a hold above $17,792 (the 78.6% Fibonacci retracement of the 2020 – 2021 move) could assist in driving the recovery.
BTC/USD Daily Chart
Chart prepared by Tammy Da Costa using TradingView
As the $18,000 level looms, Dollar weakness remains prevalent for risk assets. Although the indictment against Bankman-Fried and developments in the FTX case could continue to play a role in guiding the short-term move, price action remains key.
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While BTC/USD faces another big zone of resistance around $18,150, support remains at $17,792 with a move lower bringing the $17418 zone back into play.
BTC/USD Four-Hour Chart
Chart prepared by Tammy Da Costa using TradingView
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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