Bitcoin briefly lost $20,000 support the night before September 14 after strong US inflation sent risky assets crashing.
Hourly candlestick chart BTC/USD (bit stamp). Source: TradingView
Markets Lose Big in Attempt to ‘Fight the Fed’
It followed data from Cointelegraph Markets Pro and TradingView BTC/USD as it hit a low of $19,770 on Bitstamp, the worst since September 9.
The move came amid volatility in stocks driven by higher-than-expected CPI inflation data for August.
Although still lower than in July, the market was hoping for a faster cooling of inflation on a broader scale and thus the possibility of faster easing from the Federal Reserve.
Now that the outlook looks bleak, shares have fallen and Apple has lost $154 billion, the sixth largest daily loss in US stock market history.
Technology sales on Tuesday were particularly expensive for Apple. The world’s most valuable companies lost $154 billion in market value, according to BBG, a survey that ranks among the ten biggest single-day losses in market value in US stock market history. That’s more than the capitalization of 90% of S&P 500 companies. pic.twitter.com/M32soxmDPn
— Holger Zschepitz (@Schuldensuehner) September 13, 2022
“The markets have tried very hard to circumvent the bullish issue and fight the Fed, basically, and this is a dangerous place,” Carol Schleif, chief investment officer at the BMO family office, told Bloomberg.
Overall, US stocks are falling about $1.6 trillion a day, more than four times the market value of bitcoin.
As a result, the US dollar rose sharply and the US dollar index (DXY) hit a twenty-year high.
At the time of writing, the index is around 110, down 0.9% from the macro peak seen earlier this month.
Candlestick chart of the US Dollar Index (DXY). Source: TradingView
‘September Bear’ returns to Chase BTC Bull
At the time of writing, cryptocurrency liquidations in the market totaled $355 million, and September 13 was one of the largest long liquidations in recent weeks.
Related: Bitfinex Margin to Short Bitcoin Margin Ratio Hits All Time High
Data from network monitoring resource Coinglass also recorded $88 million in short-term liquidations that day.
Cryptocurrency Filter Chart. Source: Coinglass
Coinglass showed that the selloff resulted in BTC/USD gaining just 1% for September, which was still the first green September since 2016.