The crypto market usually dumps due to a mix of factors, not just one reason. Here are the main causes, explained simply:
I. Profit Taking
After a strong pump, big investors (whales) book profits. When they sell in bulk, price drops fast.
Ii. Macro Economic Pressure
High interest rates
Strong US dollar
Stock market weakness
When traditional markets fall, crypto often follows.
III. Liquidations
Many traders use leverage.
When price drops slightly, millions of dollars in long positions get liquidated, causing a chain reaction dump.
IV. Bad News / FUD(. F – Fear U – Uncertainty D – Doubt )
Regulatory fear (US, EU, China news)
ETF delays or negative statements
Exchange-related issues
Even rumors can crash the market.
V. Whale Manipulation
Big players push price down to:
Trigger stop losses
Buy cheaper coins
This is very common before a new move up.
VI. Bitcoin Dominance
When Bitcoin drops, altcoins dump harder (2x–3x).
BTC controls the whole market sentiment. Important Reminder
Dumps are normal in crypto
Strong projects usually recover after correction.
