The latest market data shows that the cryptocurrency sector is experiencing a significant fall trend, driven by multiple factors.

From a technical perspective, Bitcoin has fallen below the key support level of $115,000, with the current trading price around $115,977, a daily drop of nearly 2%. This breakthrough may trigger further technical selling.

Meanwhile, the behavior of large holders has also had a significant impact on the market. Reports indicate that a whale transferred approximately $105 million worth of Solana (SOL) to the Kraken exchange, likely for sale. As a result, the price of SOL has fallen below $170, with a daily decline of over 4%.

The flow of funds has also shown an unfavorable trend. Data shows that the Bitcoin spot ETF in the United States experienced a net outflow of over $110 million in the most recent trading day, indicating that institutional investors are reducing their exposure in the encryption market.

The chain reaction in the market cannot be ignored. It is reported that a well-known contract trader, AguilaTrades, had a 40x leveraged long position in Bitcoin that was forcibly liquidated, resulting in a loss of approximately $40 million. This event undoubtedly intensified the panic in the market.

The sentiment indicators also reflect a shift in investor attitudes. Although the Fear and Greed Index remains in the greed zone, it has dropped from 72 to 65, indicating that market sentiment is cooling.

The uncertainty of the macroeconomic environment also exerts pressure on the encryption currency market. The direction of the Federal Reserve's monetary policy remains the focus of the market. Currently, the market anticipates a probability of only 38.2% for a rate cut in September. A former Federal Reserve governor even stated that if the labor market does not deteriorate significantly, the Federal Reserve may delay the rate cut.

Overall, the current market is in a typical end-of-cycle adjustment phase. Investors should closely monitor whether Bitcoin can hold the key support level of $115,000, as this may determine the market direction in the short term. In such a complex market environment, it is particularly important to remain rational and cautious.