Bitcoin price falls under $21K as traders send 84K BTC to exchanges

Satoshi Prime Uncategorized September 13, 2022 | 0

Bitcoin (BTC) fell further after the Sept. 13 Wall Street open as the dust settled on unexpectedly high United States inflation.

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

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.

*Fed target rate probabilities chart as of Sep. 13, 2022. Source: CME Group*

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.

Total crypto long liquidations were much higher at $168 million, according to data from on-chain monitoring resource Coinglass.

*Crypto liquidations chart. Source: 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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