BTC falls below $112,000, triggering market fluctuations as short-term investors reach a psychological tipping point.

On August 23, on-chain data analyst Murphy posted on social media that the market reacted in advance to concerns about Powell's speech, pulling back to $112,000 before the speech. This price level happens to be the average turnover cost of "holding BTC for less than 3 months."

Murphy added that holding BTC for less than 3 months constitutes a large and active portion of short-term chips, and the sentiment of these new investors is also the easiest to sway. When the price falls below the cost line, turning paper profits into paper losses, it brings considerable psychological pressure, shifting market sentiment from optimistic to pessimistic. This cost line happens to be 112,000 USD; the support effect comes from the fact that when these short-term investors approach the breakeven point, they are reluctant to sell more of their holdings, which overall reduces the selling pressure. At least they have not completely lost confidence in the future, so their emotional judgment should be one of anxiety rather than panic.