💵 The cryptocurrency market has significantly corrected, with over $500 million liquidated across the network
Market Overview
• The total liquidation amount across the network has exceeded $500 million, and the total market capitalization has fallen back to $3.8 trillion
• Bitcoin has dropped below 116K to the range of $112,000-115,000, while ETH dipped to $3,600
• Altcoins have become severely impacted, with long positions liquidated totaling $585 million
• The Fear and Greed Index has dropped to 54, marking the largest weekly decline
Core Factors for the Correction
• Macro Pressure: The Federal Reserve maintains high interest rates, and expectations for a rate cut in September have weakened
• Technical Alerts: Profit-taking triggered as the profit supply ratio exceeded 90%, with clear signs of whale sell-offs
• Leverage Risk: The proportion of high-leverage contracts has increased, and the liquidation event on July 24th amplified volatility
Trading Opportunities and Risks
• Giant whales are bottom-fishing around $112,000 for Bitcoin
• The implied volatility of ETH options has decreased to 45%, providing strategic entry points
• DeFi liquidity is migrating to the $3,600 range
• Investment Advice: Use a combination of "dollar-cost averaging + grid trading" to cope with fluctuations, focusing on ETF fund flows and Layer 2 ecosystem performance
The market shows a sentiment of "short-term panic, long-term optimism" differentiation, with funds shifting from high-risk contracts to compliant assets, and it is expected to take 1-2 weeks to reconstruct the long-short balance.
