Recently, the cryptocurrency market has undergone a significant adjustment, with the price of Bit falling below the key support level of $115,000, down about 7.5% from the recent high of $124,000. This trend has sparked speculation in the market about whether the bull run has already ended, and currently, the market seems to be entering a consolidation phase.

Apart from Bitcoin, other major cryptocurrencies such as Ethereum and Ripple have also experienced varying degrees of fall, with overall market sentiment clearly turning cautious.

The reasons for this round of fall are mainly two aspects:

First of all, the latest economic data released by the United States was worse than expected. The inflation data for July exceeded market expectations, which may affect the Federal Reserve's monetary policy decisions. The market originally had expectations for a rate cut by the Federal Reserve, but now this possibility seems to have diminished, which undoubtedly undermines investors' confidence.

Secondly, the government's attitude towards encryption currencies remains unclear. The U.S. Treasury Secretary recently stated that they would not directly purchase Bit, which has dashed the market's hopes for potential government support for encryption currencies. This uncertainty has further exacerbated market volatility.

Nevertheless, many analysts believe that the current market adjustment may be just a short-term phenomenon. They point out that the fundamentals of the encryption currency market have not fundamentally changed, and in the long run, digital assets still have growth potential.

Investors now need to closely monitor the global economic situation, changes in regulatory policies, and the attitudes of large institutions towards encryption currencies. During this period of uncertainty, it is particularly important to remain vigilant and rational.