Bitcoin and ether are hovering in anticipation of the reaction of the US stock market to the statements that American politicians will make in the near future. Given the fairly high correlation between bitcoin and the US stock market, we can expect a surge in volatility. Many are betting on tightening monetary policy, which will further undermine traders' confidence and lead to a rejection of risk, pulling down the cryptocurrency market. But before we talk about the technical picture of trading instruments, I would like to say a few words about how things are now with Three Arrows Capital Ltd. It is a former large cryptocurrency hedge fund that filed for bankruptcy. They went bankrupt due to an irresponsible attitude towards risks when trading cryptocurrencies.

The liquidators of Three Arrows Capital Ltd. have already obtained a court decision in Singapore, which gives them a complete picture of the remaining assets of the collapsed cryptocurrency hedge fund. The High Court of Singapore granted the petition of the consulting firm Teneo, which in June was appointed by the court of the British Virgin Islands to liquidate Three Arrows. Teneo is trying to collect and preserve the assets of a hedge fund. Recognition of a court decision in Singapore gives liquidators the right to request access to any financial records the fund keeps on-site. Before that, they had no legal grounds to demand such documents and records. The liquidators plan to focus on establishing which assets are stored in Singapore, including what is left in bank accounts, real estate, cryptocurrencies, non-interchangeable tokens, and shares in companies associated with Three Arrows.

Not many people know that Three Arrows worked from Singapore, at least until the beginning of May this year, after they failed due to the Terra stablecoin, which led to the fall of the cryptocurrency market.

Remember that more recently, the liquidators gained control over the assets of Three Arrows for at least $ 40 million. Still, creditors, including Voyager Digital LLC and Digital Currency Group Inc., said that this is only a small part of the debt. Investors have filed documents indicating that they are owed more than $2.8 billion in unsecured claims, which is expected to increase significantly.

And although the story of Terra Luna has already been forgotten, things will have to be sorted out for a very long time. This will likely be a lesson to large funds that forget about risks and morality in pursuing superprofits.

As noted above, the correlation between the US stock market and bitcoin is quite high, so the further direction of BTC will depend directly on what the Fed representatives say at the end of this week. Bitcoin buyers have already tried to go back to the $21,500 level earlier this week, but it didn't work out well. Most likely, the pressure on the trading instrument will continue to increase as investors abandon risk. The bulls' focus is now on the nearest support of $20,800, a fall to which for the third time could be fatal for the bulls. In case of a breakthrough in this area, the $19,966 level will play an equally significant role. Its breakdown will send the trading instrument back to the lows of $19,232 and $18,600. It is necessary to consolidate above $21,500 as quickly as possible to restore the demand for bitcoin. It is necessary to break above the resistance of $22,180 and $22,670 to build an upward trend. Fixing this range will give a real prospect of returning to the highs: $23,180 and $23,680.

Ether buyers have every chance to miss the nearest support of $1,605, so it is not yet possible to talk about the resumption of a bullish scenario. There will be a change in the market direction only after the return of the $1,670 level, allowing you to get to $1,740 and reach the $1,820 test. The $1,885 area will act as a further target. While maintaining pressure on the trading instrument, buyers will likely show themselves at around $ 1,540. A breakdown of this level will quickly dump the ether at a minimum of $1,490 with the prospect of updating to $1,420.