Bitcoin price falls under $21K as traders send 84K BTC to exchanges
Volatility claims many a late long position with BTC price action failing to preserve support from recent days.
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Bitcoin (BTC) fell further after the Sep. 13 Wall Street open as the dust settled on unexpectedly high United States inflation.
BTC price eyes 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 tendencies set in after the U.S. Consumer Price Index (CPI) print for August arrived 0.2% higher than expected.
This in turn boosted the likelihood of a 75 or 100-basis-point key rate hike next week by the Federal Reserve — something which would pressure already creaking risk-asset markets.
Bitcoin proved especially sensitive to the event, with downside nonetheless contained by anticipated support at $20,800.
BTC/USD also managed to take out the latest CME futures gap created at the weekend, this lying between $21,300 and $21,500.
“BTC just took out the previous swing low I marked out yesterday and today,” popular trader Crypto Ed, who forecast both levels, confirmed in part of a tweet following the CPI release.
U.S. equities faced similar woes, 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 risk asset renaissance would set in until the Fed stopped its rate hikes altogether.
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
Exchange inflows hit 10-week high
Volatility meanwhile claimed the most BTC long liquidations in a week, these totaling $45 million for Sep. 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 on-chain monitoring resource Coinglass.
Analytics platform CryptoQuant meanwhile showed exchange inflows on the day already hitting their highest since July 1 at 84,000 BTC.
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