Bitcoin (BTC) briefly missed the $20,000 support overnight on September 14 as hot US inflation risked risk assets.
Markets lose a lot in the bid to “fight the Fed”.
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD hitting a low of $19,870 on Bitstamp – the worst since September 9.
The move comes amid a slump in stocks triggered by a rise in consumer price inflation (CPI) in August.
Although still lower than in July, the market had been hoping for a faster rate of inflation and the possibility of a quick unwinding of the Federal Reserve’s policy.
As that hope now dwindles, shares are bleeding, with Apple losing $154 billion — the sixth-biggest daily loss in U.S. stock market history.
The tech sale on Tue was especially expensive for Apple. The world’s most valuable com lost $154 billion in market value – a loss that was one of the 10 biggest one-day market value losses in US stock market history, ahead of CBG. That’s ~90% mkt above the S&P 500 comps. pic.twitter.com/M32soxmDPn
— Holger Zeschepitz (@Schuldensuehner) September 13, 2022
“Markets have tried too hard to test the bullish issue and fight the Fed, and that’s a dangerous place to be,” Carol Schleff, deputy chief investment officer of BMO’s family office, told Bloomberg.
In general, US stocks fell Approximately 1.6 trillion dollars per day – more than four times the market cap of Bitcoin.
As a result, the US dollar has strengthened, with the US Dollar Index (DXY) rising to twenty-year highs.
At the time of writing, the index was hovering below 110, down 0.9% from the macro peak seen earlier in the month.
“September” will return to the BTC bull
At the time of writing, market crypto liquidity totaled $355 million, making September 13 one of the biggest long liquidity events in recent weeks.
Related: Bitcoin margin long-to-short ratio on Bitfinex hits all-time high
Coinbase, an on-chain tracking source, recorded $88 million in short liquidity that day.
The sell-off BTC/USD was up just 1% for the month of September, though it was still the first “green” September since 2016, according to Coinbase.
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