$BTC

The cryptocurrency market, especially Bitcoin (BTC), has recently witnessed a significant decline. This comes from many economic, political and financial factors that are directly affecting investor sentiment and market fluctuations.

1. Pressure from the global economy

One of the main reasons for Bitcoin's price decline is the instability of the global economy. The increase in interest rates from central banks, especially the US Federal Reserve (Fed), has created tension for risky assets such as cryptocurrencies. Raising interest rates to control inflation has caused money to flow into safe assets such as bonds and gold, putting pressure on Bitcoin and other cryptocurrencies.

2. Tightening Regulatory Policies

Many countries are gradually tightening regulations related to cryptocurrencies, causing investors to worry about the legality and future development of this market. The US, EU, and China's application of stronger controls on taxation, anti-money laundering, and ownership of cryptocurrencies has negatively affected investor confidence. This not only reduces liquidity but also increases long-term instability.

3. Investor concerns

The recent sharp declines in Bitcoin's value have increased the fear, uncertainty, and doubt (FUD) sentiment among the investor community. Individual investors tend to withdraw capital from the market when prices fall sharply, creating large sell-offs, which in turn lead to further price declines.