Core Viewpoint - The cryptocurrency market is experiencing significant turmoil, with major digital currencies facing sharp declines, leading to a loss of investor confidence and a search for safer assets [1][3]. Group 1: Market Performance - On August 25, Bitcoin fell below $111,000, with a 24-hour decline exceeding 3.3%. Other cryptocurrencies like Ethereum, Dogecoin, Solana, and Cardano also dropped by over 3% [1]. - In the past 24 hours, the global cryptocurrency market saw liquidations amounting to $840 million, affecting over 166,000 investors. Long positions accounted for $670 million of the liquidations, while short positions totaled $160 million [1][4]. Group 2: Influencing Factors - Bitcoin's downward trend is notable, particularly after Federal Reserve Chairman Jerome Powell's dovish remarks, which did not lead to the expected price increase but rather continued declines [3]. - Analysts suggest that the selling pressure may be linked to "whale" investors who bought Bitcoin at very low prices and are now cashing out at higher levels, contributing to market pressure [3]. - Despite expectations of a Federal Reserve interest rate cut, this positive news has not boosted Bitcoin's performance, indicating significant capital rotation as some investors shift funds from the crypto market to other sectors [3]. Group 3: Technical Analysis - Technically, Bitcoin's price has returned to levels seen before Powell's dovish comments. To regain a bullish outlook, it needs to surpass the $117,400 high [5]. - Analysts indicate that Bitcoin's structure appears bearish on lower time frames, and if it cannot reclaim the weekly opening price of $113,400, it may face further downside risks [5]. - Key price levels to watch include a potential "gap" around $116,800, which may be tested [5]. Group 4: Future Outlook - The future trajectory of the cryptocurrency market will be influenced by multiple factors, including upcoming U.S. economic data releases and adjustments in Federal Reserve monetary policy [5]. - Investors are advised to maintain a cautious approach and closely monitor market dynamics and policy changes [5].