PANews reported on August 26th that, according to The Block, Bitcoin fell to approximately $110,000 on Tuesday, dragging the overall cryptocurrency market lower. A wave of forced liquidations has heightened volatility in derivatives markets, with short-term volatility surging ahead of the release of key US economic data. CoinGlass data shows that over $900 million in leveraged positions were liquidated in the past 24 hours, the majority of which were long positions. Sean Dawson, head of research at Derive.xyz, stated that major cryptocurrencies had a dismal start to the week, with Bitcoin and Ethereum's daily volatility jumping from 15% and 41% to 38% and 70%, respectively. Recent higher-than-expected US Producer Price Index data has heightened market concerns about macroeconomic factors. Traders are seeking risk-averse protection ahead of the release of US GDP data on August 28th and employment data in early September, driving volatility higher. Caution has also emerged in the options market, with the 25-delta skew turning negative and demand for put options increasing, indicating "the strongest demand for downside protection in two weeks." Market odds are also shifting towards a retest of $100,000 for Bitcoin and $4,000 for Ethereum before the end of September.

Leverage adjustments have been uneven. Glassnode data shows that total open interest in Bitcoin futures contracts fell 2.6%, while long funding rates increased 29%. BRN Research Director Timothy Misir believes the market decline is a result of leveraged funds liquidating. If Bitcoin fails to maintain near $110,000, technical indicators will appear "fragile." $103,700 and $100,800 are key levels, and a breach would "jeopardize the bull market structure." However, corporate funds and Wall Street have engaged in selective bottom-fishing amid market volatility.