$BTC $ETH #美国7月PPI年率高于预期

August 15th was a really exciting day for Bitcoin: it just hit a new all-time high of $124,500, but within a few hours it plunged straight down, dropping 4.24% to a low of $117,000, a difference of $7,000 in one day! The entire crypto market suffered as well, with the total market value falling by 3.9% in 24 hours to $4.09 trillion. Ethereum couldn't hold on either, falling below $4,500, and the altcoins were even worse, generally falling by more than 15%.

Why did it fall so sharply? It was actually a combination of bad news. The US PPI data for July soared to 3.3%, much higher than expected, and people started to worry that inflation couldn't be contained, and the idea of the Fed cutting interest rates was shaken. More importantly, the Secretary of the Treasury said that the government only confiscates, not purchases, shattering the previous fantasy of a national team entering the market. Coupled with the SEC's lack of clear regulation, the policy situation is a bit cold.

Technically, there were already signs: when it hit a new high, the RSI indicator was a bit off, showing a bearish divergence, and a double top pattern formed on the three-day chart. Once the key support level of $119,500 was broken, those automatic sell orders were triggered, and $880 million in long positions were liquidated within 24 hours. The more it fell, the more it was sold off, and the scene was quite chaotic.

However, the market is also quite divided: professional players are relatively calm, with futures premiums stable at 9%, and options indicators do not show panic. On-chain data also shows that large whales took the opportunity to buy 18,000 Bitcoins at a cost of between $118,000 and $120,000.

In the end, Bitcoin is called 'digital gold', but in reality, it's more like a risk asset, especially sensitive to interest rate changes. However, demand is strong in emerging markets, with trading volume in Latin America up 40%, which is also a support. Now it depends on whether $112,000 can be held, and we'll have to keep an eye on Fed policy and regulatory trends in the future~