The fall in cryptocurrency prices reflects several interconnected factors that affect their market value. First, global economic conditions, such as interest rate hikes by central banks, lead investors to move away from riskier assets such as cryptocurrencies in favor of stable assets such as the dollar and gold.

Regulations and laws play a major role, as strict legislation or government bans lead to a loss of confidence among investors. An example of this is the announcement of mining or trading bans in major countries such as China.

Natural market fluctuations also contribute; cryptocurrencies are known for their high volatility due to the lack of liquidity compared to traditional markets, which makes them more susceptible to speculation. Moreover, massive sell-offs by large investors (“whales”) can lead to rapid price declines.

Negative news, such as the bankruptcy or hacking of major platforms, exacerbates panic and affects market sentiment. In addition, the emergence of technical problems or security vulnerabilities in cryptocurrency projects can lead to a decline in investor confidence.

Finally, psychological factors such as fear (FUD) and uncertainty create sudden selling waves, which reinforce the downward trend. In contrast, improvement in market conditions or widespread adoption of the technology could help restore cryptocurrency values.