#MarketDownturn

2. Regulatory Factors

The regulatory environment plays a crucial role in shaping market sentiment. The continued tightening of regulations or the imposition of restrictions on mining and trading activities in some countries generates a sense of fear and uncertainty. Additionally, government actions related to the sale of seized Bitcoin assets or repayment plans for former bankrupt companies (such as Mt. Gox) increase market supply and directly pressure prices.

- Main reason:

Regulatory tightening and government repayment decisions.

- Impact on the market:

Increased supply, generating fear and uncertainty.

3. Structural Factors

These factors relate to the internal dynamics of the cryptocurrency market itself. Despite the launch of Bitcoin exchange-traded funds (ETFs), weak inflows into these funds during certain periods indicate a lack of institutional demand. Furthermore, large liquidations of financial positions and selling by investors who entered the market late (Panic Selling) accelerate the pace of decline and create vicious cycles of downturn.

- Main reason:

Weak ETF inflows and liquidations.

- Impact on the market:

Increased selling pressure and accelerated decline.