SBF Arrested - Set For US Extradition

Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY. This development should mark the beginning of the end for the FTX saga.

The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.

FTX/SBF Chapter Finally Closing

After many headlines, speculation and Twitter threads explaining the sheer level of fraud that has allegedly occurred at FTX, the US Attorney for the Southern District of New York has requested Bahamian authorities to arrest SBF. We will now have to allow the court process to unfold and justice be served, both in the criminal and bankruptcy courts.

As there will be many more details to come and with many outcomes still unknown, we believe this will still drag on for some time to come but it's best for crypto investors to clear their mind from the headlines and move forward. Best to focus on how to best prepare for 2023 and the upcoming macroeconomic events, then spend anymore valuable time keeping up with the tabloids.

Yearly Bitcoin P/L Swing

Source: glassnode

Worth noting in the cumulative Bitcoin on-chain realised profit and loss were some of the largest swings in history. The gains in the 2020 - 2021 bull market were nearly 4 times greater than that of the 2017 - 2018 bull market, consequentially the realised losses were also 4 times larger in the following bear market. Now as we have seen nearly half the bull market gains given back, this is a usual turning point in the market structure. Being mindful that we're not calling for a raging bull market, but a slow accumulation and stable price base usually gets put in around these realised losses.

BTC/USD Key Levels

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](https://www.tradingview.com/x/5esWNEGr/)

Interactive chart: click on image for higher resolution

Bitcoin levels remain unchanged despite the headlines. Throughout the weekend it peeked above our key level of $17,189 USD but failed to close above that on a daily chart. If it manages to close above $17,189, it sets up a move to the key resistance level of $18,217. If macro economic news is healthy, it can even retest $19,673 by end of week. To the downside, if we close below $16,500 then major support is found at the local lows of $15,588.

ETH/USD Key Levels

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](https://www.tradingview.com/x/i0OAFbyY/)

Interactive chart: click on image for higher resolution

Ethereum continues to struggle with our key level of $1,300 USD as it eyes a move higher. Should it finally close above $1,300 on the daily chart, the next major resistance level comes in at $1,386. If macro events turn positive then a strong move $1,555 cannot be ruled by end of week. To the downside, if it closes below $1,190, then a retest of the local lows coming in at $1,071 is on the cards.

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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