The Fed's rate cut dream shattered by the PPI powder keg, Becerra's words turned $1 billion to dust.
Panorama of the crash: bodies of leveraged long positions scattered everywhere
Bitcoin flash crash: within 24 hours, it plummeted 7% from $124,488 to $117,119, with volatility reaching a new high for August, total liquidations amounting to $1.062 billion, 230,000 investors were liquidated, with long positions comprising 83% of the total, becoming the hardest-hit area;
Altcoin bloodbath: Ethereum drops 5%, mainstream tokens like Solana and Avalanche plunge 14%, ecosystem tokens like REZ fall over 15%, total market capitalization evaporates by $100 billion;
Bizarre emotional divergence: the fear index plunges to 11%, but the greed index remains high, exposing a deep split between retail panic and institutional calm.
Three major nuclear-level triggers chain-react
Inflation nuclear bomb strikes again
US July PPI skyrockets 3.3% year-on-year, core PPI rises 3.7% year-on-year, the highest increase since June 2022. The data completely shatters the market's fantasy of a 50 basis point rate cut by the Federal Reserve in September, with the probability of a rate cut plummeting from 99.8% to 61%, a stronger dollar triggers a sell-off in risk assets;
Treasury 'language trap'
Treasury Secretary Becerra claimed in a Fox live broadcast that 'the US government will not directly buy Bitcoin', though he later added 'will increase holdings neutrally through confiscated asset budgets', but the market only heard the first half, leading to an immediate panic sell-off;
Derivative Death Spiral
$6.2 billion BTC/ETH/XRP options are set to expire today, with Bitcoin's biggest pain point precisely anchored at $118,000, becoming the target for short sellers. Whales took the opportunity to sell 15,129 ETH, crashing Coinbase and triggering a chain reaction of high-leverage long position liquidations.
Undercurrents: whales draining blood, capital flight in Latin America, policy games
Whale reverse harvesting: on-chain monitoring indicates that addresses holding over 1,000 BTC increased their holdings by 18,000 in a single day, the crash is actually an institutional low-price accumulation strategy;
Geopolitical safe-haven surge: Trump's threat to impose tariffs on 66 countries escalates, Latin America's digital currency trading volume skyrockets 217% in one week, Argentina and Turkey's stablecoin premiums exceed 18%, BTC becomes a 'capital flight tool';
Policy lifeline: Trump-Harris debate on September 10, CPI data on September 11, if inflation falls back, rate cut trades may restart and trigger a retaliatory rebound.
Soros reflexivity theory reappears: when consensus is distorted by power discourse, a high-leverage market must pay a bloody cognitive tax. But history shows - the $30,000 bottom-buying myth is born in such dark moments.
Midnight warning: a whale is transferring 21,000 BTC to Deribit, a double kill for bulls and bears may occur at 11 PM tonight!
