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.
Bitcoin (BTC) fell further after the Sept. 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 that 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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