In the early hours of the day, the market experienced a dramatic volatility that caught attention. As early as 02:48, the price of ETH surged towards the 5000 mark, setting a new high and successfully attracting widespread attention from the market. However, within just a few minutes afterward, market sentiment took a sharp downturn: due to a shift in macroeconomic expectations and a chain reaction of liquidations triggered by high-leverage trading, ETH began to plummet at 03:10, briefly dipping to around 4741 at 03:35. Although the price slightly rebounded to 4776.54 by 04:05, the overall fluctuation and market panic still hadn't fully dissipated.

This decline was not limited to ETH, but also affected BTC. The reason was the recent expectations of interest rate cuts from the Federal Reserve and the uncertainty signals from the Jackson Hole meeting, prompting investors to reassess the future liquidity and interest rate environment. Concerns about declining future yields led some institutions and retail investors to quickly adjust their positions, exacerbating the profit-taking in risk assets.

Moreover, high-leverage trading was prevalent in the market, and the price correction triggered a large number of forced liquidations of long positions. This chain reaction not only amplified the price decline but also led to panic selling in a short period, causing a surge in trading volume and further increasing market volatility.

In the short term, data showed that the net outflow amount of major players reached tens of millions of dollars, and the concentrated withdrawal of funds tightened market liquidity, exacerbating price fluctuations.