As the global economic landscape continues to change, the Fed's policy trends are undoubtedly the focus of market participants. Recently, the Fed has again hinted that it will raise interest rates, and this news has quickly caused market shocks, especially in the field of cryptocurrency. The price of Bitcoin fell below the psychological barrier of $28,500 in a short period of time, and the entire cryptocurrency market has therefore encountered tremendous pressure, with the total amount of liquidation reaching $127 million. This series of events not only affected investors' confidence, but also triggered deep thinking about the future market trend.

First, the interest rate policy of the Federal Reserve has always been a bellwether for the market. Rising interest rates usually mean an increase in the cost of funds. When faced with higher borrowing costs, investors tend to choose to reduce their allocation of risky assets. This is particularly evident in the cryptocurrency market. As a high-risk asset, Bitcoin's price fluctuates extremely violently. As the Federal Reserve's expectations of raising interest rates increased, market sentiment turned instantly, and many investors chose to flee at high levels, resulting in a sharp drop in Bitcoin prices.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120BTC.COM) News: After Bitcoin (BTC) surged to a high of $31,800 in mid-July, setting a new high since May last year, it has since been consolidating between $29,000 and $30,000, and the price does not seem to have any catalyst to create waves.
However, the U.S. Federal Reserve (Fed) released hawkish news early this morning (17), causing Bitcoin to fall from about $29,100 at 3 a.m. this morning to a low of $28,400. It is currently trading at $28,584, down 2.1% in the past 24 hours.
Ethereum (ETH) also showed a downward trend, falling below the $1,800 mark this morning, from around $1,830 to a low of $1,780. It is currently trading at $1,796, down 2.6% in the past 24 hours.
$127 million liquidated in the past 12 hours
Affected by the downward trend this morning that broke through the consolidation range, Coinglass data showed that the entire network had a liquidation of US$127 million in the past 12 hours, of which long orders had a liquidation of US$116 million, BTC had a liquidation of US$44.993 million, and ETH had a liquidation of US$19.4744 million.
On the other hand, data from TheBlock shows that the seven-day action average of spot trading volume on crypto exchanges has fallen to $11.2 billion, less than 30% of the peak of $46 billion in March today, reflecting that Bitcoin's volatility is at a historical low and trading volume is at its lowest level since 2020.
The 7-day moving average of crypto exchange spot trading volume fell to $11.2 billion
Fed minutes: Inflation still has the risk of rising and further interest rate hikes may be needed
The minutes of the Federal Reserve's July meeting released on Wednesday (16th) showed that officials were still worried that inflation would be difficult to subside and hinted that interest rates might continue to rise.
Most participants still believe that there is a significant risk of rising inflation, and further tightening of monetary policy may be needed. At the same time, some participants said that although "most" policymakers continue to regard fighting inflation as their top priority, pushing interest rates too high could bring risks to the economy, showing differences among officials.
The minutes of the July meeting did not rule out the possibility of further rate hikes, leaving the door open for follow-up actions. Compared with the June minutes, the biggest change in July was the interest rate guidance, which pointed out that new data and its impact on monetary policy will continue to be evaluated.
September rate hike probability 13.5%
According to data from CME Group's FedWatch tool, as of press time, the market believed that the probability of another 1 basis point interest rate hike at the September meeting had risen from 11.5 to 13.5%, while the probability of unchanged interest rates had dropped slightly from 88.5% to 86.5%.
Fed watchers will focus on next week’s annual central bank symposium hosted by the Kansas City Fed in Jackson Hole in late August, when Fed Chairman Jerome Powell will speak.
Powell will give a speech, which may provide clues about the future direction of interest rate policy.
The probability of a rate hike in September is 11.5%

In terms of specific data, the price of Bitcoin has recently fallen below $28,500, which is not only a major blow to investor confidence, but also makes many holders panic. What is more serious is that with the sharp drop in the price of Bitcoin, the entire cryptocurrency market has also entered a "booming" period.