The cryptocurrency market was hit hard at the beginning of August, with both Bit and Ethereum prices experiencing a big dump, triggering market turbulence.

Bitcoin briefly fell below the $113,000 mark this morning, hitting a low of $112,724, and then rebounded slightly, but the 24-hour drop still reached 2.1%. As the second largest encryption currency by market capitalization, Ethereum saw an even more significant decline, dropping to a low of $3,430, with a 24-hour drop as high as 5.6%.

This wave of decline has swept across the entire encryption currency market. According to CoinGecko data, the total market value of encryption currencies shrank by 6.9% in the past 24 hours, dropping to $3.7 trillion. The severe market volatility has led to a total liquidation amount of up to $1 billion across the network, reflecting a significant shift in investor sentiment.

Analysts point out that this market adjustment may be related to multiple factors, including changes in the macroeconomic environment, regulatory uncertainty, and the cooling of market speculation sentiment. Some observers believe that this could be a signal that the cryptocurrency market is entering a short-term adjustment period, while others think that this is just a normal pullback in the long-term upward trend.

Despite the short-term pressures facing the market, many cryptocurrency supporters remain optimistic about the long-term prospects of the industry. They believe that with the continued entry of institutional investors and the ongoing development of blockchain technology, the fundamentals of the cryptocurrency market remain strong.

Investors are closely watching market trends, hoping to see if prices can stabilize and rebound in the coming days. Meanwhile, market participants are also reassessing their risk management strategies to cope with potential further volatility.

Regardless, this sudden market adjustment once again reminds investors of the high volatility nature of the encryption currency market and the importance of maintaining a cautious and rational attitude when participating in investments.