Recently, the crypto assets market has experienced significant fluctuations, attracting widespread follow from investors. The price of Bitcoin has fallen below the $110,000 mark, reaching a new low since early July, with a minimum touching $109,324. Meanwhile, Ethereum has also not been spared, falling below $4,400, with a nearly 8% drop within 24 hours.

This wave of decline has caused tremendous market losses, with over $900 million in liquidations across the network within 24 hours. Among them, long investors in Ethereum and Bitcoin lost $322 million and $207 million, respectively. Other mainstream Crypto Assets have also not been spared, with Solana falling over 8%, Ripple (XRP) down 6%, and some mid and small-cap tokens like PENDLE experiencing daily declines as high as 13%.

From a long-term perspective, the market outlook does not seem optimistic. Analysis indicates that Bitcoin's strong performance in July and August may reverse in September, likely probing the support level at $110,000. Ether may see a 20%-30% pullback after briefly reaching a new high, while other competing coins may fall by 30%-50%.

The core reason for this market trend may be related to the Federal Reserve's policies. The expectation of interest rate cuts by the Federal Reserve in September is not a good news; instead, it may become a trigger for uncertainty. Unlike the expected "soft landing rate cuts" in 2024, this time could be a "major turning point," potentially leading to a simultaneous adjustment in the stock market and the Crypto Assets market.

In addition, Bitcoin has a CME gap in the range of $93,000 to $95,000, where liquidity is concentrated. Most retail investors have entered positions above $110,000 to $120,000, and the market may need to fall to the "maximum pain point range" for retail investors in order to flush out the "weak holders."

As the market continues to fluctuate, investors need to closely follow market trends and manage risks appropriately. Although the market may face challenges in the short term, the long-term prospects for the development of the crypto assets market remain promising.