The crypto market is experiencing increased volatility, with Bitcoin and other crypto assets generally falling.

June 12 is referred to by the financial market as "Super Wednesday" because the latest CPI data and the Federal Reserve's interest rate decision will be announced that day, which could become a barometer for the next wave of trends in the crypto market.

On the eve of this important moment, the crypto market has experienced significant fluctuations. Bitcoin, although it once approached $70,000, was unable to hold that position and fell to the $66,000 range, even briefly touching a near three-week low of $66,170.

According to the data, although Bitcoin has rebounded to around $67,000, the 24-hour fall still stands at 1.1%. Other Crypto Assets have experienced a larger pullback, with a certain index falling more than 6%, and the prices of the 20 included Crypto Assets generally declining. Ethereum has dropped below $3,500, with a fall of 6.5%, while several other major Crypto Assets have seen declines between 6-9%.

The sudden pullback this time led to a massive liquidation. Data shows that over $250 million in leveraged derivative trading positions across the crypto market were liquidated, mainly long positions. This marks the second instance of large-scale leveraged spikes within a week after $400 million was liquidated last Friday.

Despite the market fluctuations, industry analysts are not overly pessimistic. Some fundamental indicators are still performing well:

1. The user base of Ethereum continues to grow, with the number of active addresses and newly added addresses reaching historically high levels.

2. The significant decrease in the holdings of stablecoins on exchanges may indicate a recovery in market confidence.

3. The Personal Consumption Expenditures ( PCE ) index announced on May 31 is 2.8%, and it is expected that this data has been absorbed by the market.

A certain crypto investment institution believes that despite the pressure on the short-term market, it is still a good opportunity to accumulate Crypto Assets. They point out that the recent downturn in the crypto market is mainly due to the following factors:

1. The U.S. non-farm payroll data exceeded expectations, and U.S. Treasury yields rose.

2. The changes in the political situation in France have triggered risk aversion.

3. The market remains cautious ahead of the release of important economic data.

4. Certain Crypto Assets investment products are experiencing capital outflows.

Another research institution pointed out that Bitcoin may experience frequent fluctuations recently, as the crypto market is "highly sensitive" to economic data and "highly correlated" with the U.S. stock market. Their research shows that bullish traders' Bitcoin positions over the past two weeks are currently in a losing state, exposing the market to potential long squeeze risks.

Currently, the crypto assets market's expectations for the future are mainly influenced by changes in monetary policy. Some analysts believe that the market may be in the preparation phase for the next bull market. The core focus of the future market includes the timing of the Federal Reserve's interest rate cuts, the performance of Ethereum-related investment products, the funding inflows of crypto assets investment products, and macroeconomic trends.

Overall, despite the pullback in the crypto market this week, the overall positive trend of the market has not changed. Observers have pointed out that some positive signs that emerged during the sell-off may indicate a rapid economic recovery. The Federal Reserve Chairman previously stated that most policymakers believe there is a suitable time this year to lower the policy interest rate, but greater confidence is still needed to ensure sustainable inflation decline.

It is worth noting that Bitcoin has retraced multiple times before several important economic conferences this year, but shortly after, it quickly reversed its trend. Therefore, some analysts believe that the current fall may be an opportunity to buy the dip.