Although the United States released CPI data for August, showing a slowdown in inflation, the performance of the cryptocurrency market on September 11 was still full of volatility. The dramatic change in total market capitalization suggests traders made significant position adjustments around the time the data was released. This volatility may be related to the market's re-evaluation of expectations for the upcoming Federal Reserve meeting and interest rate cuts.
Crypto market volatility is closely tied to the performance of the U.S. stock market. After the CPI data was released, major stock indexes such as the S&P 500, Dow Jones and Nasdaq fell before recovering slightly. Similarly, Bitcoin and Ethereum have experienced significant volatility, first falling and then quickly rebounding.
Judging from the data provided by Coinglass, long liquidation in the futures market played a key role in this fluctuation. The liquidation of positions by long traders intensified the selling pressure in the market, causing cryptocurrency prices to fall sharply. In the past 24 hours, long liquidations of $108 million and short liquidations of $54.12 million further indicate that market volatility is increasing, especially when prices adjust, and the selling pressure of longs is more significant.
Technically, the cryptocurrency market is currently in a bear flag pattern, with the total market capitalization testing the support level of $1.917 trillion. A failure of this key level could trigger further declines, with the target possibly reaching $1.552 trillion. This means that the market may face a potential adjustment space of more than 20%.
From a personal perspective, this market environment suggests that traders should remain cautious, especially since market sentiment is volatile following the release of CPI data. While interest rate cuts are expected, actions taken by the Fed are likely to be gradual, raising questions about the strength or durability of the market rebound.
In the short term, the market is likely to remain under pressure, and bulls will need to pay close attention to changes in support levels and liquidation conditions in the futures market.
