The crypto market experiences increased volatility, with Bitcoin and alts falling in sync.

On June 12, known as "Super Wednesday," the crypto market experienced significant volatility. On this day, the market will face two important events: the release of the latest CPI data and the announcement of the Federal Reserve's interest rate decision. This data could become crucial indicators for the future trends of the crypto market.

In the face of uncertainty in the market outlook, cryptocurrency prices have generally fallen. Bitcoin, although it opened near $70,000 yesterday, failed to maintain this key position, falling to the $66,000 range, and even briefly touched a nearly three-week low of $66,170. According to data, although Bitcoin has rebounded to around $67,000, the 24-hour drop is still 1.1%.

In contrast, the fall of alts is more pronounced. A certain index fell by more than 6%, with all 20 major encryption currencies included experiencing a price drop. Ethereum fell below $3500, with a decline of 6.5%. Other well-known alts such as SOL, DOGE, ADA, and LINK saw declines ranging from 6% to 9%.

The sudden market adjustment has led to a large-scale liquidation event. Liquidation occurs when traders cannot meet margin requirements or maintain positions. According to data, over $250 million in leveraged derivatives trading positions of crypto assets across the network were liquidated, mainly due to forced liquidation of long positions. This is the second large-scale leveraged shock within a week, following last Friday's liquidation of $400 million.

Despite the poor performance of the market in the short term, industry analysts remain relatively optimistic about the long-term prospects of the crypto market. Some fundamental indicators are still performing well, such as:

1. The user base of Ethereum continues to grow, with the number of active addresses and newly created addresses reaching relatively high historical levels.
2. The significant decrease in exchange stablecoin holdings may indicate that investors are reallocating their funds into higher-risk assets.
3. Macroeconomic data such as Personal Consumption Expenditures ( PCE ) index has been digested by the market and is expected not to change the current wait-and-see attitude of the Federal Reserve.

Some institutional investors believe that although the market may come under pressure in the short term, it is still a good opportunity to accumulate encryption coins. Some positive factors include the upcoming launch of a spot Ethereum ETF and increased attention from political figures to encryption coins.

Currently, the crypto market's expectations for the future are mainly influenced by changes in monetary policy. The market seems to be in the preparatory stage for the next bull market. The core focus points for the future market include the timing of the Federal Reserve's interest rate cuts, the market reaction after the approval of the Ethereum ETF, the inflow of funds into Bitcoin ETFs, and the differences between macroeconomic trends and the actual market reactions.

Overall, although there was a pullback in the crypto market this week, it has not changed the overall positive trend of the market. Some market observers pointed out that the positive signs that emerged during the sell-off could indicate a rapid economic recovery. As other countries around the world continue to lower interest rates, the United States may also have to consider adjusting its monetary policy. Bitcoin seems to be gradually digesting the potential impact of the Fed's interest rate cuts.