Bitcoin price falls below $21,000 as traders send 84,000 BTC to exchanges
Bitcoin (BTC) fell further after Wall Street opened on September 13 as the dust settled on unexpectedly high inflation in the US.
BTC price is seeing 9% daily losses
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD giving up $21,000, down up to 8.45% on the day.
Bearish trends set in after the US Consumer Price Index (CPI) for August came out 0.2% higher than expected.
This in turn increased the likelihood of a 75 or 100 basis point rate hike next week by the Federal Reserve – which would pressure already creaky risk asset markets.
Bitcoin proved particularly sensitive to the event, with downside nevertheless contained by expected support at $20,800.
BTC/USD also managed to take out the last CME futures gap created over the weekend, this is between $21,300 and $21,500.
“BTC just took out the previous swing low I marked yesterday and today,” popular trader Crypto Ed, who forecast both levels, confirmed in part of a tweet following the CPI release.
US stocks faced similar problems, with the S&P 500 down 3% and the Nasdaq Composite Index 4% lower at the time of writing.
For Jurrien Timmer, director of global macro at asset manager Fidelity Investments, there was no reason to believe that a renaissance for risk assets would set in until the Fed stopped its interest rate hikes altogether.
Look at the 1994 cycle to understand the current one: Values are unlikely to rise until the Fed finishes tightening and 2-year yields begin to fall. pic.twitter.com/xk6DDYLdzp
— Jurrien Timmer (@TimmerFidelity) 13 September 2022
Currency inflows hit a 10-week high
Volatility, meanwhile, claimed the most BTC long liquidations in a week, these totaling $45 million for September 13 at the time of writing.
Related: The Fed, the Merge and $22K BTC – 5 things to know in Bitcoin this week
Total crypto long liquidations were much higher at $168 million, according to data from chain monitoring resource Coinglass.
Analytics platform CryptoQuant, meanwhile, saw inflows on the day, which already reached its highest since July 1 at 84,000 BTC.
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