Bitcoin has not risen but has fallen! Overnight, $900 million in long positions were liquidated!

Just when everyone thought that Powell hinted at interest rate cuts at the Jackson Hole meeting and Bitcoin was about to hit new highs, the result was a sharp downturn. Bitcoin directly fell below $109,000, returning to a seven-week low, wiping out all gains from last week.

In the past 24 hours, the market has been bloodied, with 200,000 traders liquidated, totaling over $900 million, the vast majority of which were long positions. This wave of selling was even worse because a large player sold 24,000 BTC all at once, triggering a chain reaction of liquidations. Since hitting a historic high of $124,000 in mid-August, Bitcoin has corrected by 12%, with a 7% drop occurring just after Powell's speech.

The entire crypto market evaporated nearly $200 billion overnight, bringing the total market cap back to $3.84 trillion. Ethereum has held up relatively well, dropping to $4,340, still above last week's low. Yesterday, it attempted to surge to $4,800 but failed, and in the evening, it dropped back to $4,330, with a single-day decline of over 7%. Other altcoins fared worse: XRP fell nearly 5%, Solana dropped nearly 10%, and BNB also fell by 4%.

The flow of funds further illustrates the situation: $1.4 billion flowed out of crypto ETPs last week, ending two consecutive weeks of inflows. The inflow of stablecoins remained relatively stable, indicating that money hasn't completely left, but market sentiment has clearly shifted towards risk aversion.