Bitcoin (BTC) briefly lost support at $20,000 overnight on Sept. 14, after US inflation pushed risk assets lower.
Markets lose big in an attempt to “fight the Fed”
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it hit lows of $19,870. on Bitstamp, its worst level since September 9.
The move came amid a drop in stocks triggered by August Consumer Price Index (CPI) inflation data.which exceeded expectations.
Although it is still lower than in July, the market expected a more rapid cooling of inflation in general and thus the possibility of a more rapid easing of policy by the Federal Reserve.
Given this perspective, equity indices have lost value, and Apple has lost $154 billion, the sixth largest daily loss in US stock history.
Tech selloff on Tue has been particularly costly for Apple. World’s most-valuable comp lost $154bn in market value – a wipeout that ranks among the top 10 worst single-day market value losses in US stock market history, acc to BBG. That’s more than mkt cap of ~90% of S&P 500 comps. pic.twitter.com/M32soxmDPn
— Holger Zschaepitz (@Schuldensuehner) September 13, 2022
Selling tech stocks has been especially costly for Apple. The world’s most valuable company has lost $154 billion in market value, one of the 10 worst single-day market value losses in US stock history, according to BBG. That’s more than the market capitalization of ~90% of S&P 500 companies.
“Markets had been desperately trying to spin a bull case and fight the Fed, basically, and that’s a dangerous situation to be in,” Carol Schleif said.deputy chief investment officer at BMO Family Office, told Bloomberg.
Total, US stocks fell approximately USD 1.6 billion on the day, more than four times the market capitalization of bitcoin.
Consequently, the US dollar strengthened, Y the US dollar index (DXY) hit twenty-year highs again.
At the time of writing this article, the index was circling just below 110, less than 0.9% below that macro peak seen earlier in the month.
“Septembear” follows after BTC bulls
At the time of writing this article, cryptocurrency cross-market liquidations amounted to $355 million, with September 13 marking one of the largest long-liquidation events in recent weeks.
Data from on-chain monitoring resource Coinglass also captured $88 million of short liquidations on that day.
The sell-off thus left the BTC/USD pair up just 1% for the month of September, which was not the first “green” September since 2016, as Coinglass showed.
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