The current cryptocurrency market is experiencing significant volatility, with a market capitalization falling by 6.6% to $3.74 trillion, and over $950 million in positions liquidated within 24 hours, of which 90% were long positions. Market sentiment indicators show that investor sentiment has shifted from optimistic to cautious, with the fear and greed index dropping to 65 points, placing it in the neutral range.

The price of Bitcoin fell to $112,968, a drop of 2.4%, breaking below the key support level of $113,000. The Relative Strength Index (RSI) has dropped to 35.4, indicating a possible oversold condition. Ethereum has also been hit hard, with the price dropping 5.56% to $3,489, marking a new low for the month, and a "death cross" signal has appeared on the hourly chart, suggesting potential continued pressure in the short term.

The overall market is showing a downtrend, with mainstream cryptocurrencies such as Solana, Ripple, and Dogecoin experiencing varying degrees of decline. However, the SocialFi sector rose against the trend by 1.65%, and MemeCore surged by 17.75%, indicating that there are still investment opportunities in certain niche areas.

The main factor triggering this round of market turmoil is the significant downward revision of the U.S. non-farm payroll data. The employment data for May and June was revised down by a total of 258,000, the largest adjustment since the pandemic. In July, new jobs added were only 73,000, far below the expected 104,000. This data caused the market's expectation of a rate cut by the Federal Reserve in September to surge from 40% to over 80%, leading to a single-day plunge of 1.37% in the U.S. dollar index.

At the same time, the cryptocurrency ETF market has also seen a massive withdrawal of funds. The net outflow of Bitcoin spot ETFs reached as high as $810 million in a single day, setting a new high in nearly half a year. Ethereum ETFs ended a continuous 20-day net inflow, instead showing a net outflow of $150 million.

These factors combined have led to a decline in investor confidence in the encryption currency market, with a noticeable increase in risk-averse sentiment. Nevertheless, there are still structural opportunities in the market, and investors need to closely monitor macroeconomic data and policy changes, carefully assessing investment risks.