Why Is Bitcoin Falling?

Bitcoin’s price can decline due to several factors. One major reason is market sentiment, driven by fear, uncertainty, and doubt (FUD). When investors panic, they sell off their holdings, leading to price drops. Regulatory concerns also play a significant role; government crackdowns or new regulations can reduce confidence in crypto markets. Macroeconomic factors, such as rising interest rates or inflation, often push investors towards safer assets. Additionally, whale movements—large holders selling their Bitcoin—can trigger sharp declines. Lastly, technical corrections occur after major rallies, as traders take profits. These combined factors contribute to Bitcoin's volatility and price drops.

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