The cryptocurrency market experienced a sudden and violent shock last night. Bit fell sharply from its historical high of $124,500, breaking the key support level of $117,500 in just a few hours, reaching a low of $117,180. This nearly 7,000-point drop dealt a heavy blow to bullish investors.



Ethereum has not been spared either, sharply falling from a high of $4,788 to a low of $4,451, and is currently hovering around $4,600.

The extent of the impact of this fall is shocking: According to statistics, in the past 24 hours, a total of 189,000,221,517 people worldwide encountered liquidation, with a total liquidation amount reaching 900 million USD. The losses for contract traders are indeed severe.

The reason for this market crash is not due to a single factor, but rather the result of multiple adverse factors overlapping. Among them, the key triggering factor is the latest published data of the U.S. Producer Price Index (PPI). The PPI in July increased by 0.9% month-on-month, marking the largest increase in nearly a year, and the core PPI also exceeded market expectations.

This data has brought two direct consequences: first, inflation expectations have once again heated up, and rising corporate costs may ultimately be passed on to the consumer end, putting upward pressure on the Consumer Price Index (CPI). Second, the expectations for a rate cut in September have been severely hit; the market's previous hopes for a 50 basis point cut have completely evaporated, and it is now generally believed that a 25 basis point cut would be quite good.

The FedWatch tool of the Chicago Mercantile Exchange (CME) also reflects a significant change in market expectations regarding Federal Reserve policies. This sudden shift in the macroeconomic environment is undoubtedly one of the important reasons for the substantial adjustment in the encryption currency market.

In the face of such drastic market fluctuations, investors need to remain calm, carefully assess the risks, and closely monitor subsequent economic data and policy trends. For investors with a long-term optimistic outlook on encryption assets, this may be an opportunity to buy on dips; whereas for short-term traders, more caution is required, and risk management must be prioritized.
BTC0.25%
ETH-1.47%
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0xLostKeyvip
· 08-15 14:53
Tied Up必死啦啊啊
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GasGuzzlervip
· 08-15 14:52
I'm losing money again, about to go bankrupt.
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WenMoon42vip
· 08-15 14:33
Another night without sleep watching Get Liquidated
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