Today, the crypto world is truly chaotic, with an outrageous level of noise. Look, Bitcoin has directly fallen from its previous high to $115,000, losing almost 3% in just 24 hours. Popular coins like Ethereum and Solana have dropped even more severely, exceeding 6%. The entire market capitalization has also fallen below 4 trillion, now just over 3.88 trillion, and the market is in widespread lament.

Worse yet, over 130,000 people were liquidated in the past day, with total liquidation amounts exceeding $500 million, and basically all long positions got wiped out. The largest liquidation occurred on Bitmex, resulting in a direct loss of $7.82 million. Many stayed up all night monitoring the market, only to wake up and find they had been liquidated. This feeling is something anyone in the crypto world understands.
In fact, this wave of plunge is not because everyone suddenly lost confidence in coins, but rather various funds are rotating capital. For instance, in terms of ETFs, funds are flowing out of Grayscale and ARK Invest, but BlackRock's IBIT is still attracting money in. The spot Ether ETF is similar, as institutions are finding ways to reduce costs. In short, the money hasn't completely withdrawn; it's just relocating.
U.S. Treasury Secretary Basent also mentioned last week that the government would no longer buy Bitcoin and would use the coins it has already confiscated as reserves. Once this news spread, people in the crypto world felt a bit disheartened. However, he later published a statement indicating a desire to "explore budget neutrality" and find ways to acquire more coins, leaving room for variables.
Don't forget about the Federal Reserve; the expectations for interest rate cuts are also an invisible killer. In July, the U.S. PPI soared so much that the hopes for rate cuts were cut in half. When risks rise, large investors generally remain on the sidelines, waiting for a clearer environment before taking action. It feels like we need to observe the Jackson Hole global central bank meeting at the end of August to see how Powell responds; the crypto world still needs to wait and see. In short, this wave of operations is a bit scary, so it's wise to be cautious when entering the market. #PI #BTC #ETH #GateioInto11