Volatility claims many a late long position with BTC price action failing to preserve support from recent days.
Bitcoin (BTC) fell further after the Sep. 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
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.
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.
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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