Recently, the Bitcoin market has experienced significant price fluctuations, leading to over 1 billion dollars in liquidations across the network, affecting approximately 230,000 investors. This fluctuation is mainly driven by changes in market expectations regarding the Fed's potential interest rate cuts.

Initially, multiple economic indicators suggested that the US economy might slow down, triggering market optimism regarding the Fed potentially cutting interest rates in September, which drove up the price of Bitcoin. However, the recently released initial jobless claims and Producer Price Index ( PPI ) data hinted that the economy remains strong, dampening market hopes for a near-term rate cut and causing the price of Bitcoin to retreat.

Nevertheless, analysts generally believe that given the current interest rates are still relatively high, a future rate cut by the Fed is still a high probability event, although the timing may be delayed. This expectation continues to support the long-term optimistic sentiment in the market.

It is worth noting that if Bitcoin can break through its traditional influence pattern of the 4-year halving cycle in this round of market trends and maintain a prolonged fluctuation in the range of $111,000 to $125,000, then once the Fed officially begins to cut interest rates, Bitcoin may accumulate stronger upward momentum.

This series of events highlights the close relationship between the cryptocurrency market and traditional financial markets, as well as the profound impact of macroeconomic policies on digital asset prices. Investors need to closely monitor global economic conditions and central bank policy trends to better grasp market movements.