The fall in the crypto world can be attributed to several factors, many of which are interdependent. Here are some of the most relevant ones:

Stricter regulation: Governments in several countries are taking stricter measures to regulate the cryptocurrency market. This creates uncertainty, as investors fear that new laws may limit access to or use of cryptocurrencies.

Inherent volatility: Cryptocurrencies are notoriously volatile. While this can sometimes lead to significant gains, it can also result in sharp declines. Price fluctuations often respond to factors such as market sentiment, news, or movements by large investors (whales).

Distrust due to fraud and hacks: There have been a number of frauds, hacks, and bankruptcies in major crypto projects, such as the case of FTX or attacks on exchange platforms. This erodes investor confidence and makes the market more vulnerable.

Interests of large traditional investors: The interest of traditional financial institutions and large investors has changed in some cases, affecting prices and market stability. While some have remained committed to cryptocurrencies, others have reduced their exposure due to volatility.

Global economic crises: Macroeconomic factors, such as inflation, rising interest rates, or global economic uncertainty, can lead investors to seek safer assets and abandon cryptocurrencies in favor of more traditional havens like gold or government bonds.

Low expectations regarding new technologies: Some investors and analysts have questioned the long-term viability of certain projects and cryptocurrencies, especially in a context where technological promises are not always successfully fulfilled.

These and other factors contribute to the volatility and decline being experienced in the cryptocurrency market.$BTC