Crow Brother will talk about the reasons for the sudden crash of BTC

Crow's 6 small thoughts

1. Governments turn on you faster than flipping a book

One day, if the U.S. suddenly says, 'Bitcoin is illegal,' or Europe requires all transactions to be real-name, the market will immediately collapse. Just like in 2021 when China suddenly banned mining, Bitcoin plummeted 30% in a week, and mining machines were sold as scrap metal.

2. Large institutions stepping on each other

Now large institutions are hoarding too much Bitcoin. If giants like BlackRock and Fidelity suddenly decide to sell collectively, it will be like a supermarket discount on eggs, and people will rush to grab them, causing prices to crash through the floor. Remember how a single statement from Musk caused Bitcoin to drop by $10,000 in one day in 2021?

3. Technological revolution causing destruction

If quantum computers can really crack Bitcoin's encryption (although the possibility is extremely low), everyone will panic and sell. It's like hearing that a security door can be opened in a second; who would dare to keep gold bars at home?

4. Federal Reserve interest rate hikes are deadly

If the U.S. goes on a crazy interest rate hike (for example, 5% interest on bank deposits), many people will pull their money out of Bitcoin to deposit in banks for interest. When the Federal Reserve raised rates in 2022, Bitcoin fell from $69,000 to $15,000, dropping faster than jumping off a building.

5. New coins stealing the spotlight

If a better new coin appears (for example, if the Ethereum ETF is approved), funds will be diverted. It's like a trendy milk tea shop opening; the old shop next door has no one lining up immediately. When Solana was hot, Bitcoin's market share was robbed by over 5%.

6. Miners collectively dumping

If Bitcoin falls below $58,000, many miners will shut down at a loss. To pay their electricity bills, they will sell Bitcoin frantically every day, causing prices to drop further, leading to a vicious cycle.

Summary

Bitcoin is a thing where wild rises and falls are the norm. It has been halved 11 times in history, but each time it managed to rise again. The crazier it rises now, the harder it will fall. Ordinary people should remember two sentences:

Don't borrow money to trade coins; when it drops, there's no room on the rooftop.

Don't panic during a crash; it might be a buying opportunity (if you still have money).

(Cool fact: Every time the media declares 'Bitcoin is dead' after a crash, they have been slapped in the face for over a decade.)

$BTC #加密市场回调 #币安HODLer空投HAEDAL #币安LaunchpoolHUMA

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