Crypto Assets market Fluctuation intensifies, "Super Wednesday" may become a key turning point

The Crypto Assets market experienced significant Fluctuation on the eve of the release of important economic data known as "Super Wednesday." The uncertainty regarding the future direction appears to have intensified, leading to a drop in the price of Bitcoin and other crypto assets.

The price of Bitcoin has fallen from a recent high of nearly $70,000 to the $66,000 range, briefly touching a near three-week low of $66,170. Although there has been a rebound since then, the 24-hour decline still stands at 1.1%. The declines for other Crypto Assets are even more pronounced, with one index showing a general drop among 20 major Crypto Assets, including Ethereum, which has fallen below $3,500, with a decline of 6.5%.

This sudden pullback led to a large-scale liquidation event, with over $250 million in leveraged derivative trading positions of crypto assets being liquidated across the network, primarily involving long positions. This is the second large-scale leveraged surge within a week, following the $400 million liquidation last Friday.

Despite the pressure on the short-term market, some industry analysts remain optimistic about the long-term prospects of the encryption market. They point out that the user base of Ethereum continues to grow, and the decrease in the holdings of stable coins on exchanges may indicate a recovery in market confidence. At the same time, macroeconomic data such as the Personal Consumption Expenditures Index has been absorbed by the market and is not expected to change the Federal Reserve's current wait-and-see attitude.

A certain crypto investment institution believes that despite the short-term market trend towards risk aversion, it is still a good opportunity to accumulate Crypto Assets. They analyzed several factors leading to the recent market decline, including better-than-expected U.S. employment data, a weakening euro, market caution regarding the upcoming economic data, and outflows from Bitcoin ETFs.

Another research institution pointed out that the correlation between Bitcoin and the U.S. stock market has reached its highest level in 18 months, which may lead to more frequent fluctuations in the future.

Looking ahead, the market seems to be in the preparation phase for the next wave of increase. Key factors include the timing of the Federal Reserve's interest rate cuts, market reactions after the approval of Ethereum ETFs, changes in sentiment regarding the inflow of funds into Bitcoin ETFs, and the expectation gap between macroeconomic trends and actual market reactions.

It is worth noting that Bitcoin has experienced fluctuations before several important economic meetings this year, but subsequently reversed its trend quickly. Therefore, some analysts believe that the current pullback may be an opportunity to buy the dip.

As other countries around the world continue to cut interest rates, the United States may find it difficult to ignore this trend. Bitcoin seems to be gradually digesting the impact of the Federal Reserve's potential interest rate cuts. Although the market may continue to experience fluctuations in the short term, many analysts remain optimistic about the long-term outlook.