Bitcoin (BTC) continued to fall after the Wall Street open on September 13, as the dust of unexpected inflation settled in the United States.
The price of BTC contemplates daily losses of 9%
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair giving up $21,000, down as much as 8.45% on the day.
The downward trend came after the US Consumer Price Index (CPI) for August came in 0.2% higher than expected.
This, in turn, it raised the likelihood that the Federal Reserve will raise interest rates by 75 or 100 basis points next week, something that would put pressure on already troubled risk asset markets.
Bitcoin was especially sensitive to this event, although the decline was contained by expected support at $20,800.
The BTC/USD pair also managed to clear the latest CME futures gap created over the weekend, which is between $21,300 and $21,500.
“BTC just took out the previous swing low that I marked yesterday and today,” confirmed popular trader Crypto Ed, who forecast both levels, in part of a tweet following the CPI release.
US equities faced similar problems, with the S&P 500 down 3% and the Nasdaq Composite Index down 4% at press time.
For Jurrien Timmer, head of global macroeconomics at asset manager Fidelity Investments, there was no reason to believe there would be a renaissance in risk assets until the Fed ended its rate hikes.
Look to the 1994 cycle to understand the current one: Valuations are unlikely to rally until the Fed is done tightening and the 2-year yield starts falling. pic.twitter.com/xk6DDYLdzp
— Jurrien Timmer (@TimmerFidelity) September 13, 2022
To understand the current cycle, look back to 1994: Valuations are unlikely to recover until the Fed finishes tightening and the 2-year yield starts to fall.
Exchange Inflows Hit 10-Week High
In the meantime, volatility claimed the most BTC long liquidations in a week, totaling $45 million for September 13, at the time of writing this article.
Total crypto long position liquidations were much higher, at $168 million, according to data from on-chain monitoring resource Coinglass.
For its part, analytics platform CryptoQuant showed that exchange inflows on the day have already reached their highest since July 1, at 84,000 BTC.
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