Bitcoin (BTC) fell further after Wall Street opened on September 13 as the dust settled on unexpectedly high inflation in the United States.
BTC price eyes 9% daily loss
After the arrival of the US Consumer Price Index (CPI) for August, bearish tendencies appeared 0.2% higher than expected.
This again increased the probability a 75 or 100 basis point increase in key rates next week by the Federal Reserve – something that would put pressure on already creaky risk asset markets.
Bitcoin turned out to be particularly sensitive to this event, with the expected support at $20,800 nevertheless dampening the downside.
BTC/USD also managed to clear the last CME futures gap created over the weekend, which was between $21,300 and $21,500.
US stocks faced similar difficulties, with the S&P 500 down 3% and the Nasdaq Composite down 4% at the time of writing.
Jurrien Timmer, director of global macro at asset manager Fidelity Investments, had no reason to believe there would be a risk-asset renaissance until the Fed stopped raising rates altogether.
Look at the 1994 cycle to understand the current one: Valuations are unlikely to strengthen until the Fed ends tightening and the two-year yield begins to decline. pic.twitter.com/xk6DDYLdzp
— Jurrien Timmer (@TimmerFidelity) September 13, 2022
Stock market inflows hit a 10-week high
Volatility, meanwhile, claimed the most BTC long liquidations for the week, totaling $45 million for September 13 at the time of writing.
Total long cryptocurrency liquidations were much higher at $168 million, according to data from an on-chain monitoring source Coinglass.
analytics platform CryptoQuant meanwhile, they reported exchange inflows on the day that had already reached their highest since July 1 at 84,000 BTC.
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