Bitcoin (BTC) lost the $20,000 support overnight on September 14, when heated United States inflation reduced the riskier asset.
Big drop in market to “fight the Fed”
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit a low of $19,870 on Bitstamp – its worst since September 9.
The move came amid a stock rout as consumer price index (CPI) inflation data for August came in on expectations.
Despite still being lower than in July, the market had expected inflation to cool more broadly and therefore a more rapid easing of policy by the Federal Reserve.
With that prospect now appearing slim, the equity index hemorrhaged value, with Apple losing $154 billion — the sixth-largest daily loss in US stock market history.
Tuesday’s tech selloff has been particularly costly for Apple. The world’s most valuable comp lost $154bn in market value – a wipeout that ranks among the top 10 worst single-day market cap losses in US stock market history, attributed to BBG. This is higher than the MKT cap of ~90% of the S&P 500 comps. pic.twitter.com/M32soxmDPn
— Holger Zaschaepitz (@Schuldensuehner) 13 September 2022
“The markets were desperately trying to spin the bull case and fight the Fed, and it’s a dangerous place,” Carol Schleff, deputy chief investment officer for the BMO Family Office, told Bloomberg.
Overall, US stocks fell about $1.6 trillion In the day – more than four times the bitcoin market cap.
The strength of the US dollar increased, with the US Dollar Index (DXY) rising back to a twenty-year high.
At the time of writing, the index was just under 110, less than 0.9% from the macro peak seen earlier in the month.
“September” returns to haunt BTC bulls
At the time of writing, cross-market crypto liquidations totaled $355 million, with 13 September being one of the largest long liquidation events in recent weeks.
RELATED: Bitcoin Margin Long-to-Short Ratio on Bitfinex Hits All-Time High
Data from on-chain monitoring resource Coinglass also captured short liquidations worth $88 million that day.
The selloff thus pushed BTC/USD up only 1% for the month of September, which was still the first “green” September since 2016, CoinGlass showed.
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