BTC price stuck around $20k as US stocks lost 4 Bitcoin market cap.

Bitcoin (BTC) briefly missed the $20,000 support overnight on September 14 as hot US inflation risked risk assets.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

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.

“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.

1-hour candlestick chart of US Dollar Index (DXY). Source: TradingView

“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.

Crypto liquidity chart. Source: Coinglass

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.

BTC/USD Monthly Return Chart (Snapshot). Source: Coinglass

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