In today’s cryptocurrency market, Bitcoin faced a significant downturn, dropping to a ten-day low. This decline was concurrent with the ongoing trial of Sam Bankman-Fried (SBF), the founder of FTX and Alameda Research. Startlingly, Caroline Ellison, the former CEO of Alameda Research, made allegations during the trial, claiming that she had engaged in fraudulent activities at the behest of SBF. The cryptocurrency markets, already in a state of uncertainty, also saw a decline as traders closely monitored these developments, along with the anticipation of the upcoming release of the U.S. Producer Price Index, a crucial measure of inflation.
Bitcoin:
Bitcoin (BTC) extended its four-day slide, with the SBF trial capturing the attention of many market participants. Caroline Ellison revealed that she had manipulated balance sheets as directed by Sam Bankman-Fried to present Alameda’s financial position as less risky to investors. Following a recent peak at $27,605.82 just on Tuesday, the BTC/USD pair experienced an intraday low of $27,017.64 in today’s trading session. This drop brought Bitcoin to its lowest point since the beginning of October. A glance at the charts shows that Bitcoin briefly dipped below the $27,100 support level before buyers re-entered the market. The Relative Strength Index (RSI) also fell below a support level of 53.00 and is currently at 51.67. BTC has since recovered from its earlier lows and is presently trading at $27,292.17.
Ethereum:
Ethereum (ETH) managed to reclaim a crucial support level of $1,565 after breaking below it earlier in the day. ETH/USD dropped to a low of $1,551.68 earlier, only to rebound and reach its current price of $1,575.39. Despite this rally, Ethereum remains near a one-month low, still lower than the peak of $1,587.56 seen just on Tuesday. The recent sell-off has led to a crossover of the 10-day (red) moving average with the 25-day (blue) moving average. If this crossover continues to develop in a bearish trend, there is a substantial likelihood that ETH will drop below the $1,500 mark.