✅ Market manipulation and large sell-offs by big holders (whales or institutions).
Here’s how and why this happens in context:
Big players take profits: After strong price rallies, whales and institutions start selling large amounts of crypto to secure profits.
Liquidation cascade: As prices drop, highly leveraged traders get liquidated, which causes even sharper declines.
Panic selling: Retail investors, seeing the price fall quickly, panic and sell too — adding to the downward pressure.
Negative news or macro factors: Bad regulatory news, unexpected economic data (like interest rate hikes or inflation fears) can trigger or worsen the crash.
Overall, these crashes often aren’t accidental — they can be part of a cycle where whales shake out weaker hands to accumulate at cheaper prices.