Bitcoin (BTC) briefly missed $20,000 support overnight on September 14 after tepid inflation in the United States sent risk assets crashing lower.
Markets Lose Big in Attempt to ‘Fight the Fed’
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit a low of $19,870 on Bitstamp – the worst since September 9.
The move came amid a stock market rout caused by August Consumer Price Index (CPI) inflation data that beat expectations.
Despite still being lower than in July, the market was hoping for a faster decline in inflation overall and therefore the possibility of faster policy easing from the US Federal Reserve.
With that outlook now looking bleak, stock indexes have been hemorrhaging, with Apple shedding $154 billion — the sixth-biggest daily loss in U.S. stock market history.
Tuesday’s tech selloff was particularly costly for Apple. The world’s most valuable company lost $154 billion in market value — a wipeout that ranks among the 10 worst one-day losses in U.S. stock market history, according to BBG. This is more than mkt cap ~90% of S&P 500 comps. pic.twitter.com/M32soxmDPn
— Holger Zschaepitz (@Schuldensuehner) September 13, 2022
“Markets have been desperate to make a bull case and fight the Fed, basically, and that’s a dangerous place to be,” Carol Schleif, deputy chief investment officer at BMO Family Office, told Bloomberg.
Overall, US stocks fell about $1.6 trillion per day — more than four times the Bitcoin market cap.
As a result, the US dollar gained strength, with the US Dollar Index (DXY) returning to 20-year highs.
At press time, the index was hovering just below 110, less than 0.9% below the macro peak seen earlier in the month.
The “Septembear” is back to haunt the BTC bull
At the time of writing, cross-market cryptocurrency liquidations totaled $355 million, with September 13 being one of the largest long-term liquidation events in recent weeks.
Related: Bitcoin long-to-short margin ratio on Bitfinex hits highest ever
Data from the on-chain monitoring resource Coinglass also recorded short liquidations of $88 million that day.
Thus, the sell-off left BTC/USD up just 1% for the month of September, which was nevertheless the first “green” September since 2016, Coinglass showed.
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