$BTC $ETH $BNB The freefall of cryptocurrencies refers to a sudden and sharp drop in prices across the digital asset market. This phenomenon can be triggered by several factors, including:
Cascade liquidations: Traders using high leverage have their positions forcibly closed, leading to a spiral of massive sell-offs.
Panic sentiment: A loss of investor confidence can cause rushed selling, further amplifying the price drop.
FUD (Fear, Uncertainty, and Doubt): Negative news, such as strict regulations or an exchange hack, can trigger widespread panic.
Market manipulation: "Whales" (large investors) can cause violent price swings by liquidating massive positions.
Correlation with traditional markets: A global economic crisis or a stock market crash can also impact the crypto market.
During a freefall, key support levels are often broken, and the price searches for a new equilibrium, typically marked by extreme volatility. Experienced traders see opportunities, while novices may suffer significant losses.
