After heated American inflation sent risky assets plunging down overnight into September 14, Bitcoin (BTC) momentarily lost its $20,000 support level.
1-hour candle chart for BTC/USD (Bitstamp). the TradingView website
Attempts to “fight the Fed” backfire badly on the markets.
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it dropped to its lowest level since September 9 on Bitstamp, $19,870.
The action was taken in the midst of a stock market crash brought on by Consumer Price Index (CPI) inflation data for August exceeding forecasts.
Despite the fact that it was still lower than in July, the market had anticipated a more rapid decline in inflation overall, which increased the possibility of a speedier easing of Federal Reserve policies.
Equities indexes lost value as a result of that potential now becoming remote, with Apple suffering the sixth-largest day loss in U.S. stock market history after losing $154 billion.
Apple has suffered notably from the Tuesday tech selloff. The most valued competitor fell short.
According to BBG, the wipeout of $154 billion in market value is among the ten biggest one-day market value losses in US stock market history.
That exceeds the market worth of over 90% of S&P 500 comparables. pic.twitter.com/M32soxmDPn
September 13, 2022 — Holger Zschaepitz (@Schuldensuehner)
Markets had essentially tried to make a bull case and battle the Fed, and it was a risky position to be in.
Bloomberg was informed by Carol Schleif, the BMO Family Office’s deputy chief investment officer.
U.S. stocks lost around $1.6 trillion in value overall on the day, which is more than four times the value of Bitcoin.
The U.S. dollar index (DXY) subsequently surged back near twenty-year highs as the U.S. dollar gained strength as a result.
The index was slightly under 110 at the time of writing, less than 0.9% below the macro top reached earlier in the month.
Chart of 1-hour candles for the US dollar index (DXY). the TradingView website
The ghost of “September” haunts BTC bull
Cross-market crypto liquidations were at $355 million as of this writing, with September.
One of the most extended liquidation incidents in recent weeks involved the number 13.
Related: Bitfinex records its highest-ever long-to-short ratio for bitcoin
On that day, there were $88 million worth of short liquidations, according to information from the on-chain monitoring tool Coinglass.
As a result of the sell-off, BTC/USD was only up 1% for the whole month of September, but it was still the first “green” September since 2016, according to Coinglass.
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