Recently, blockchain data analysis expert Murphy shared his latest insights on the Bitcoin market through social media. He pointed out that market participants are concerned about the upcoming speech by Fed Chairman Powell, leading to a drop in Bitcoin's price to $112,000 before the speech.

Murphy particularly emphasized the importance of this price level, stating that it is precisely the average trading cost of 'Bitcoin held for less than 3 months.' This group holds a significant position among short-term investors and is also the most active part of the market. Their investment mindset is often quite sensitive and easily affected by market fluctuations.

When the price of Bitcoin falls below the cost line for these new investors, their paper profits turn into losses, and this shift can cause them considerable psychological stress. This stress may in turn trigger a change in market sentiment from optimism to pessimism.

However, Murphy believes that the price level of $112,000 may also provide support. When short-term investors approach the breakeven point, they may reduce selling, which could alleviate the overall selling pressure in the market. This indicates that investors have not completely lost confidence in the future.

Based on these observations, Murphy assesses that the current market sentiment may be in a state of anxiety, but has not yet reached the level of panic. This subtle balance could have a significant impact on the short-term trend of Bitcoin.

As the global economic situation continues to change, the direction of the Bitcoin market still has many uncertainties. Investors need to closely monitor various macro factors and market indicators in order to make more informed investment decisions.