On the morning of August 28th, cryptocurrencies generally fell, with the largest digital currency Bitcoin falling more than 5%, breaking below the $60000 mark and dropping as low as the $58000 mark.
As of August 28th, Bitcoin was reported at $59387, a decrease of 5.72%.
In addition, Ethereum experienced a sharp decline, with a intraday drop of over 8%; Dogecoin fell nearly 7%.
According to Coinpass data, within 24 hours, a total of 85670 people on the entire cryptocurrency network had their positions liquidated, with $314 million (approximately RMB 2.2 billion) evaporating.
Federal Reserve Chairman Powell gave the clearest signal last Friday, indicating that the Fed is planning to cut benchmark interest rates from their highest level in over 20 years, and major tokens are selling back. Institutional analysis suggests that major tokens are digesting signals from Powell last week.
Tony Sycamore, a market analyst at IG Australia Pty, said that for many assets, "the Federal Reserve is basically at work," which makes it "somewhat concerning" for Bitcoin to fall below its 200 day moving average price.
According to data compiled by Bloomberg, spot Ethereum ETFs launched in July have seen a total net outflow of nearly $112 million for eight consecutive trading days as of yesterday, making it their longest net outflow period to date.
Ethereum has not yet regained the position it lost in early August when the cryptocurrency market and global stock markets suffered heavy losses due to the lifting of yen arbitrage trading.
In addition, some analysts had previously warned that panic could affect the cryptocurrency market due to geopolitical tensions in the Middle East and low sentiment in risk assets such as technology stocks.
According to a previous report by Beijing Business Daily, several analysts mentioned in interviews with reporters that changes in market expectations are an important factor leading to fluctuations in Bitcoin prices. On the one hand, the global stock market decline and rising risk aversion have put pressure on Bitcoin, and even interest rate cuts have failed to boost market confidence, further exacerbating market uncertainty. On the other hand, the movement of market funds has also had a significant impact on the price of Bitcoin. With the price correction, a series of chain liquidations have been triggered, resulting in a rapid decline in the price.