The stock market's losses are putting pressure on crypto prices, BTC near $20,000

The crypto markets are feeling the pressure of $1.6 trillion in losses in the U.S. stock market, with BTC prices hovering near $20,000.

It's been a wild ride for Bitcoin over the past 24 hours. After briefly touching $20,000 overnight, BTC prices have crashed lower on news of hot inflation in the United States. While some investors may be spooked by this latest development, others see it as a buying opportunity.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The BTC/USD 1-hour candle chart looks very promising, with the price currently trading above the $9,000 level.

Markets lose big as investors "fight the Fed."

It's been a tough few days for Bitcoin. The leading cryptocurrency by market capitalization fell to its lowest level in over two months on Tuesday, according to data from Cointelegraph Markets Pro and TradingView.

The move came amid a stocks rout triggered by Consumer Price Index (CPI) inflation data for August coming in above expectations. The inflation data caused many investors to worry about the possibility of interest rates rising sooner than expected, which weighed heavily on the stock market.

The market had hoped for a quicker cooling of inflation more broadly, which would have given the Federal Reserve a chance to loosen policy sooner. However, inflation remains lower than it was in July, so the market may have to wait a bit longer for relief.

As the prospects for a quick and easy resolution to the trade war between the United States and China appear to be dimming, the stock market is taking a hit, with Apple losing $154 billion in value. This is the sixth-biggest daily loss in the history of the US stock market, and it is a sign that investors are increasingly nervous about the potential for a prolonged trade conflict.

Markets have been desperately trying to spin a bull case and fight the Fed, but that is a dangerous place to be, according to Carol Schleif, deputy chief investment officer at BMO Family Office. The Fed has been clear that it is committed to raising interest rates, and markets have been ignoring this fact at their peril.

It is clear that the stock market crash has caused many investors to lose faith in traditional financial institutions. However, it is also clear that Bitcoin is weathering the storm better than most. This resilience is likely to increase confidence in the cryptocurrency, and could lead to more mainstream adoption in the future.

The U.S. dollar is surging back towards twenty-year highs, thanks to a strong economy. The U.S. dollar index (DXY) is up significantly from where it was just a few years ago, and is now close to its all-time high.

The market looks like it is finally starting to rebound after a long period of decline. The index is up 0.9% from its earlier low, and this could be a sign that investors are finally starting to feel confident again.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
The U.S. dollar index (DXY) is a key indicator of the strength of the U.S. dollar against a basket of major currencies.

"Septembear" returns to haunt BTC bull

The cryptocurrency market has seen some significant liquidations in recent weeks, totaling $355 million. This has been one of the largest long liquidation events in recent weeks, with Sep. 13 seeing the most significant activity. This suggests that there is still a lot of volatility in the market, and that investors need to be cautious when making decisions.

The Bitcoin margin long-to-short ratio at Bitfinex has reached the highest level ever, suggesting that traders are betting on further price increases in the cryptocurrency.

The data from Coinglass shows that there was a lot of activity on the markets on that day, with $88 million worth of short positions being liquidated. This is a clear sign that the market is moving and that traders are taking action.

Crypto liquidations chart. Source: Coinglass
The crypto liquidations chart is a great way to keep track of your crypto investments.

The Coinglass data shows that BTC/USD was up just 1% in September, making it the first "green" September since 2016. This is a positive development for the cryptocurrency, which has seen a lot of volatility in recent months.

BTC/USD monthly returns chart (screenshot). Source: Coinglass
Looking at the BTC/USD monthly returns chart, it's clear that Bitcoin has been on a bit of a rollercoaster ride over the past year.