Home CryptocurrencyAltcoin BTC Price Holds at $20,000 as US Stocks Lose Equivalent of 4 Bitcoin Market Caps

BTC Price Holds at $20,000 as US Stocks Lose Equivalent of 4 Bitcoin Market Caps

by SuperiorInvest

Bitcoin (BTC) briefly lost support at $20,000 overnight to September 14 after hot inflation in the United States sent risk assets lower.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Markets Lose Big in Effort to ‘Fight the Fed’

Data from Cointelegraph Markets Pro and TradingView followed by BTC/USD as it hit a low of $19,870 on Bitstamp – the worst since September 9.

The move came amid a slide in stocks triggered by consumer price index (CPI) inflation data for August above the expectations.

Despite still being lower than in July, the market was hoping for a faster cooling in broader inflation and thus a chance for faster policy easing from the Federal Reserve.

With that prospect now looking slim, stock indexes tumbled and Apple lost $154 billion — the sixth-largest daily loss in U.S. stock market history.

“Basically, the markets have been desperate to start a bull run and fight the Fed, and that’s a dangerous place to be,” Carol Schleif, deputy chief investment officer at BMO Family Office, he said Bloomberg.

Overall, US stocks fell by approximately $1.6 trillion per day – more than four times the market capitalization of Bitcoin.

The US dollar subsequently strengthened and the US dollar index (DXY) surged back to 20-year highs.

At the time of writing, the index was hovering just below 110, less than 0.9% below that macro peak. earlier in the month.

US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView

“Septembear” returns to chase the BTC bull

At the time of writing, cryptocurrency liquidations across the markets totaled $355 million, with September 13 constituting one of the largest long liquidation events in recent weeks.

Related: The long-short Bitcoin margin ratio on Bitfinex has reached an all-time high

Data from an on-chain monitoring source Coinglass it also captured $88 million in short liquidations that day.

Table of cryptocurrency liquidations. Source: Coinglass

The selloff saw BTC/USD rise just 1% for the month of September, which was still the first “green” September since 2016, Coinglass showed.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

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