Bitcoin Crash Scenario:

Bitcoin could face a significant decline if a combination of macroeconomic and internal crypto market factors align. One of the main triggers would be a tighter monetary policy from the Federal Reserve, with unexpected interest rate hikes in the U.S. to combat inflation. This tends to reduce appetite for risk assets like cryptocurrencies.

Additionally, a potential regulatory crackdown in major markets such as the United States, the European Union, or China could spark panic among investors. Bans on exchanges, restrictions on stablecoin use, or measures against mining would directly impact confidence in the ecosystem.

Internally, a security scandal—such as a major exchange hack or the collapse of a large crypto firm—could trigger mass liquidations, similar to what happened with FTX in 2022.

If these factors were to occur simultaneously, Bitcoin could lose key technical support levels (such as $50,000, $42,000, or $30,000), triggering automatic sell-offs (stop-loss orders) and fueling a domino effect.