1. Mass liquidations

    If many people have leveraged positions (that is, borrowing to invest) and the price drops, those people can 'liquidate' their positions. This generates more sales, pushing the price lower.

    For example, liquidations worth hundreds of millions of dollars have been reported when the market falls.

  2. Macroeconomic factors

    T-24s are considered risk assets, so when there is economic uncertainty (the dollar rises, bond yields rise, etc.), investors pull their money out of cryptos.

    Interest rates also play a role: if the Federal Reserve (or other central banks) decides not to lower rates as much as expected, it can cause investors to move away from risky assets like cryptocurrencies.

  3. ETF Outflows

    If investors pull money out of exchange-traded funds (ETFs) of $BTC or $ETH or other cryptocurrencies, it can lead to significant sales.

    This capital outflow can trigger a general price decline.

  4. Negative headlines or geopolitical risks

    Bad news (such as unfavorable regulations, macroeconomic problems, or a crisis of confidence) can cause people to sell.

    For example, if there are issues in China or restrictive policies, that can impact the market.

  5. Natural volatility of the crypto market
    Cryptocurrencies are very volatile by nature: their price can rise or fall very quickly simply due to speculation.

    Many people invest for 'quick gains,' and when there is a correction, a chain reaction of selling occurs.

  6. 'Necessary deleveraging'

    Sometimes declines are part of a market 'adjustment': after a phase of high speculation or significant leverage, the market needs to correct to clean itself.

    According to some analysts, these moments of correction can be healthy for the market #cripto in the medium to long term.

  7. Economic 'surprise' data

    Markets react to unexpected macro data: for example, if the economy of a key country (like China or the U.S.) cools down, it can lead to investors selling cryptocurrencies.

    Opportunity 'factors' can also come into play: if there is new data that makes another type of investment more attractive, people may exit cryptocurrencies.