The decline of Bitcoin at 8:00 a.m. Beijing time was caused by the combined effect of multiple factors:
The impact of the macroeconomic situation:
Changes in the expectations of the Fed's interest rate cuts: The market originally expected the Fed to start a rate cut cycle in September, which may prompt funds to flow into risky assets and have a certain boost to the price of Bitcoin. However, if the market's expectations of the Fed's rate cuts change, such as believing that the magnitude of the rate cut may be less than expected, or the timing of the rate cut may be delayed, then investor sentiment will be affected, leading to a decline in Bitcoin prices.
Recession concerns: Economic indicators such as the inverted U.S. Treasury yield curve show that the possibility of a future recession has increased. In this case, investors may reduce their investment in risky assets, including Bitcoin. A recession will lead to a decrease in people's income, a decrease in spending power, and a corresponding decrease in demand for assets such as Bitcoin.
Panic selling: The cryptocurrency market itself has a high volatility. Once there is some negative news or a trend of falling prices in the market, panic will spread rapidly. This panic selling will further exacerbate the decline in Bitcoin prices.