13.01.202309:43 Forex Analysis & Reviews: FTX returns $5 billion in liquid assets

Bitcoin and Ethereum have rushed to new yearly highs amid news that inflation in the US has fallen significantly. According to the US Department of Labor, the consumer price index fell by 0.1% in January from the previous month, with energy prices falling for the first time in 2.5 years. The CPI rose to 6.5% on a yearly basis, the lowest level since October 2021. The core index excluding food and energy rose by 0.3% last month and to 5.7% from a year ago, the slowest pace since December 2021. The data were fully in line with economists' forecasts.

Before we dive into the technical prospects and the possible future movement of the first cryptocurrency, let's say a few words about the fact that FTX, a cryptocurrency company that recently went bankrupt because it was conducting ultra-aggressive investment activities with its own clients' money, has already recovered at least $5 billion in liquid assets, including cash, cryptocurrency, and securities. This was reported yesterday by Sam Fried's attorneys to a bankruptcy judge.

Notably, the cryptocurrency exchange was once valued at $32 billion but collapsed after reports of financial irregularities that led to criminal and regulatory investigations and the arrest of CEO Sam Bankman-Fried. FTX's new CEO, John J. Ray, had previously claimed that at least $8 billion in customer assets were missing.

The news came just after federal prosecutors announced plans to seize at least $500 million in assets related to FTX as part of an ongoing prosecution. According to FTX attorney Adam Landis, the $5 billion figure does not include illiquid cryptocurrency assets. He said the company's assets were so large that if sold, it would significantly impact the market by reducing their value.

Recently, the SEC indicted FTX founder Sam Bankman-Fried for orchestrating an equity and investor capital fraud scheme. He is currently under house arrest after he was released from prison after his extradition.

As for bitcoin, a breakout of the upper boundary of the sideways channel and fixation above it draws quite a bright outlook for the beginning of the year. Lower inflation in the US will keep the demand for risky assets, which includes bitcoin. The near-term goal of bulls is to control the level of $19,000. Settling above this level, a new bullish trend may establish with the prospect of hitting $20,000 and $20,540. If the pressure on the trading instrument returns, bulls will have to protect the level of $18,300. If this level is broken through, bears may push the asset lower. That would put pressure on bitcoin, opening the way to $17,400 and $16,600. Reaching below these levels, the world's first cryptocurrency may plummet to $15,560 and $14,650.

As for ETH, bulls are focused on piercing the resistance of $1,435. That will be enough to consolidate and get out of the sideways channel seen since November 6. This will also lead to a change in the market and stop the bearish wave. A consolidation above $1,435 would bring ETH back into balance with the prospect of reaching a high of $1,570. The next target is located in the area of $1,675. If the pressure on the trading instrument returns and the support of $1,310 is pierced, the level of $1,198 level may become the next target. If the price declines below this level, the trading instrument is likely to be pushed to the low of 1073. Below we have only the levels of $999 and $934 which will be quite painful for cryptocurrency holders.