After the release of US data displaying a tense situation in the labour market and Q3 GDP data revised upward, investors became more concerned that the US Federal Reserve will maintain its hawkish policy for longer than expected.
After dropping sharply at the beginning of the week, Bitcoin's price reversed upward, completely recovering the ground it lost on Monday and testing the resistance level at $16,800.
News emerged that the founder and former CEO of the bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, was detained in the Bahamas at the request of the US government.
Investors remain wary of rising COVID cases in China, believing that the increasing infection rates could disrupt consumption and production in the world's second-largest economy.