According to orders from law enforcement, the issuer of Tether (1), the biggest stablecoin in the cryptocurrency market, has frozen up to $46 million worth of USDT. According to Whale Alert (2), the FTX exchange controls the blacklisted/frozen address, a feed that tracks significant bitcoin transactions.
What caused this?
After insolvency rumors spurred widespread withdrawals, the FTX exchange experienced a liquidity crisis. The Binance exchange pulled out of a plan to buy the company. Therefore efforts to preserve the exchange are still failing. Meanwhile, cryptocurrency prices have begun to rise again, with the price of Bitcoin surging past $17,000. The chart below shows that BTC challenged support at $15,544 before printing the current bullish candle.
The stochastic oscillator indicates that buyers are steadily taking control. This indicator helps spot overbought and oversold circumstances (over 70.00). (below 30.00). If the stochastic maintains a move to the north, short-term long bets will be secure. If the signal rises back above the midline and even reduces the distance to the overbought level, buyers will initiate long-term buy positions.
Price chart for BTC-USD exceeding $17,000
For the price of bitcoin to climb sustainably to highs above $20,000, where BTC is now trading, it must conclude the day above $17,000.