The recent crash of Bitcoin can be attributed to several factors:
1. **Macro-economic Environment**: Global economic uncertainties, rising interest rates, and inflation concerns have contributed to investors being cautious about risky assets like cryptocurrencies.
2. **Regulatory Concerns**: Increased regulatory scrutiny, particularly from major economies such as the U.S., has created uncertainty around the future of crypto trading and investments. News of potential government crackdowns can lead to market sell-offs.
3. **Market Corrections**: Bitcoin, like other assets, experiences regular market corrections after periods of significant growth. FOMO-driven rallies can lead to over-inflated prices, which then face a sharp correction.
4. **Large Sell-offs**: Major investors or institutions occasionally sell off significant amounts of Bitcoin, which can trigger a cascade of automatic sell-offs across exchanges, leading to a sudden drop in price.
These combined factors lead to increased market panic, which fuels further declines.
