After Fed Powell's speech at Jackson Hole, the entire network of crypto assets got liquidated over 900 million USD.

Bitcoin suddenly fell below the key support of $110,000 on August 26, dipping to a low of $109,000, triggering a global Crypto Assets market liquidation of $940 million in a single day (of which $826 million was long positions). The total market capitalization evaporated by $200 billion, retreating from a high of $4 trillion to $3.8 trillion. Although Fed Chairman Powell had previously sent dovish signals at the Jackson Hole meeting that pushed Bitcoin up to $117,000, the Favourable Information effect was short-lived, and the market fell back into a state of high Fluctuation.

[Comprehensive Analysis of Liquidation Tide and Leverage Risk] According to CoinGlass data, this round of liquidation presents three main characteristics:

• Long positions account for 87.8%: A total of 8.26 billion USD long positions were liquidated, reflecting excessive optimism and leverage accumulation in the market.
• Bitcoin liquidation of $277 million: accounting for 29.5% of the total network liquidation.
• Ethereum is relatively resistant to declines: although it fell by 4.9%, it has held the $4400 level, with liquidation volume significantly lower than BTC. This sharp fall confirms the traditional financial market rule of "the Fed buys on expectation and sells on facts," as profit-taking concentrated after the rate cut expectations were realized.

[Policy and Market Sentiment Game] Fed Chairman Powell delivered a key speech at the Jackson Hole conference on August 22:

• For the first time, it explicitly acknowledges that policy uncertainty has increased.
• Suggests a possible early start to the interest rate cut cycle
• Previously drove Bitcoin to rise 4.2% in a single day, approaching the weekly high of $117,000. But the favorable policy did not last, mainly due to:
• High leverage: The funding rate for perpetual contracts across the network remains at an extreme value of over 0.15%.
• Whale selling pressure: A mysterious address sold 25,000 BTC in one go, triggering a chain reaction.
• Miners cashing out: Bitcoin miners' outflow in seven days reaches a six-month high

[Technical Support and Market Outlook]

Key price level monitoring shows:

• Bitcoin first support: $108,000 (120-day moving average)
• Bitcoin second support: $102,000 (previous high converted support)
• Ethereum defensive position: $4300 (institutional cost range) For crypto users engaged in "contract trading" and "leverage management", it is recommended to pay attention to the changes in the futures open interest volume. The current OVI indicator shows that short positions are not fully dominant.

[Conclusion] Although this round of liquidation has caused short-term pain, it has effectively cleared the excessive leverage risk. Historical data shows that each large-scale long position liquidation is often followed by a strong rebound. Investors are advised to pay attention to the effectiveness of the support at $108,000 for Bitcoin and to gradually position themselves in the ETH/BTC trading pair. In the medium to long term, the Fed's interest rate cut cycle will continue to boost the bull run of Crypto Assets, and the current adjustment may be a buildup for a surge in the fourth quarter.