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BTC price clings to $20K as US stocks lose the equivalent of 4 Bitcoin market caps

Bitcoin (BTC) briefly lost $20,000 support overnight into Sept. 14 after hot United States inflation sent risk assets crashing lower.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Markets lose big in bid to “fight the Fed”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit lows of $19,870 on Bitstamp — its worst since Sept. 9.

The move came amid a stocks rout triggered by Consumer Price Index (CPI) inflation data for August coming in above expectations.

Despite still being lower than July, the market had hoped for a quicker cooling of inflation more broadly and hence the chance of a quicker loosening of policy by the Federal Reserve.

With that prospect now appearing slim, equities indexes hemorrhaged value, with Apple losing $154 billion — the sixth-biggest daily loss in U.S. stock market 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 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

“Markets had tried desperately to spin a bull case and fight the Fed, basically, and that’s a dangerous place to be,” Carol Schleif, deputy chief investment officer at BMO Family Office, told Bloomberg.

In total, U.S. stocks fell by approximately $1.6 trillion on the day — more than four times the Bitcoin market cap.

The U.S. dollar consequently increased in strength, with the U.S. dollar index (DXY) surging back towards twenty-year highs.

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

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

“Septembear” comes back to haunt BTC bull

At the time of writing, cross-market crypto liquidations totaled $355 million, with Sept. 13 forming one of the largest long liquidation events in recent weeks.

Related: Bitcoin margin…

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