Recently, the cryptocurrency market has shown significant volatility, with Bitcoin once touching the key support level of $11,200, causing other digital assets to also adjust. Ethereum fell below the $4,500 mark, triggering a wave of selling that further intensified market uncertainty. Behind this volatility, multiple factors are at play.

First, investors are focusing on the upcoming Jackson Hole annual meeting. The market widely expects that the Federal Reserve may implement a 25 basis point rate cut in September, but the latest Producer Price Index (PPI) showing a year-on-year increase of 0.9% may weaken the likelihood of aggressive rate cuts. If Federal Reserve Chairman Powell sends hawkish signals at the meeting, it could put more pressure on the encryption market.

Secondly, the tense international political situation has added uncertainty to the market. Recent diplomatic activities have failed to alleviate conflicts and may have instead intensified investors' risk aversion, indirectly affecting the performance of cryptocurrencies.

In terms of market sentiment, although call options dominate, low volatility (DVOL at only 2.6%) may indicate potential risks. Investors need to closely monitor the Federal Reserve's meeting minutes on August 20, Powell's speech on August 22, as well as important economic data such as non-farm payrolls and the Consumer Price Index (CPI) set to be released in September.

Investors should be vigilant about key price levels regarding short-term market trends. If Bitcoin falls below $11,200, it may further dive to the support level of $10,800. Similarly, if Ethereum cannot hold the $4,000 mark, it may trigger a larger scale sell-off.

In this complex market environment, investors need to remain calm, pay attention to macroeconomic indicators and policy trends, and closely monitor the technical performance of major cryptocurrencies to formulate appropriate investment strategies.