The decline in the cryptocurrency market may be due to a combination of factors. Here are the most common ones:
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📉 1. Negative news or regulations
Governments announcing restrictions (such as the U.S., China, or the EU).
Cases of fraud, hacks, or bankruptcies of platforms (such as FTX or Mt. Gox).
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💰 2. Massive selling by investors
Large holders (whales) sell to secure profits.
Panic and chain selling occur among the general public.
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📊 3. Bearish technical indicators
Technical analysis may indicate a downtrend, and traders sell in anticipation.
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🏦 4. International monetary policy
Interest rate hikes by the Federal Reserve (FED) lead investors to prefer traditional assets.
The dollar strengthens and risk assets (such as cryptos) decline.
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🧠 5. Market sentiment
Fear and uncertainty about the global economy.
A single rumor can trigger sharp declines.