Why Bitcoin's price can drop suddenly:

1. Market Panic:

When large investors (called “whales”) sell off a significant amount of Bitcoin, it can cause panic among smaller investors, leading to a wave of selling and a sharp price drop.

2. Government Regulations:

If a country announces a ban or strict regulations on cryptocurrencies, it often causes fear in the market and drives the price down.

3. Global Economic Uncertainty:

Events like inflation, rising interest rates, or a stock market crash can make investors pull out of risky assets like Bitcoin.

4. Security Breaches or Hacks:

Hacks of major crypto exchanges can lead to fear and loss of trust, causing a sell-off.

5. Negative News:

Bad news related to Bitcoin or blockchain technology—such as fraud, scams, or criticism from financial leaders—can lead to a drop in demand and price.

6. Technical Factors:

Bitcoin's price often follows technical analysis patterns. If key “support levels” are broken, it can trigger automatic sell orders, causing a rapid price decline.