#MarketTurbulence The volatility of the cryptocurrency market is due to a mix of economic, technological, and psychological factors.
One of the main reasons is market sentiment, where fear, uncertainty, and hype - often amplified by social media - trigger rapid buying or selling. Regulatory changes also play a key role; announcements from governments or authorities regarding bans, taxes, or compliance rules can affect prices instantly. Macroeconomic factors, such as changes in interest rates, inflation data, or geopolitical events, influence investors' appetite for risk, leading to volatility.