Recently, the cryptocurrency market has faced a significant shock. On the evening of August 31, two key pieces of U.S. economic data were released, both of which fell short of expectations. This includes the number of initial jobless claims in the U.S. for the week ending July 26 and the year-on-year core PCE price index for June. The poor performance of this data immediately triggered a violent reaction in the market.

The cryptocurrency market subsequently experienced a comprehensive decline. As the market benchmark, the price of Ethereum plummeted from around $3877 to about $3762 in a short period, showing a significant drop. Other cryptocurrencies were also not spared, generally falling by 5% to 10%.

It is worth noting that the market is about to welcome the monthly closing, which is usually an important moment for determining the medium-term trend. More importantly, the U.S. unemployment rate for July and the seasonally adjusted non-farm payroll data will also be released on the evening of August 1. These two data points are considered to have a significant impact on the market direction.

Currently, Bitcoin and Ethereum have been oscillating at high levels for nearly 18 days, and the market is in a state of high tension. The upcoming economic data, regardless of the outcome, could trigger significant market volatility. Considering that the weekend is approaching, market liquidity typically declines, which further increases market uncertainty.

In this complex market environment, investors need to remain cautious. Blindly entering the market may bring unnecessary risks. It is advisable to wait for the market to stabilize before considering entry. Of course, every investor should make decisions based on their own risk tolerance and investment strategy.

In the face of the current market situation, it is crucial to remain calm and rational. Continuously monitor market dynamics and analyze various information from multiple angles to find your footing in this market full of opportunities and challenges. No matter how the market changes, caution and patience are always the best friends of investors.