Crypto prices drop due to several factors:

Market Sentiment & Investor Behavior – Fear, uncertainty, and large sell-offs by whales can drive prices down.

Macroeconomic Factors – Interest rate hikes, inflation, and stock market crashes affect crypto markets.

Regulatory Crackdowns – Government bans or lawsuits create uncertainty and panic selling.

Exchange Issues & Hacks – Exchange failures, liquidity problems, or security breaches reduce trust in crypto.

Overleveraging & Liquidations – Forced sell-offs from margin trading can trigger price crashes.

Network & Tech Issues – Blockchain outages or security flaws can lead to loss of confidence.

Market Cycles – Crypto naturally moves through bull and bear markets, causing periodic declines.

Understanding these factors helps investors navigate crypto volatility.$BTC