Why did the crypto market experience a sudden drop?

1. Massive sell-offs

Whales 🐋 and institutions may have sold their assets to secure profits, causing panic and a chain reaction. Retail traders followed... and boom — red everywhere!

2. Negative news

FUD (Fear, Uncertainty, Doubt) spreads quickly! Headlines about regulatory actions, lawsuits, or hacks 🧨 can shake investors' confidence in minutes.

3. Over-leveraged positions

Too many traders using leverage? When the price drops slightly, liquidations start to occur — pulling prices even lower.

4. Weak volume and momentum

No strong buyers = no support. When volume dries up, even a small selling pressure can cause large declines.

5. Global macroeconomic factors

Interest rate hikes, inflation updates, or geopolitical tensions 🌍 can send shockwaves across all markets — including crypto!