Bitcoin crashed mainly due to several factors happening at the same time. Global economic uncertainty made investors move their money from risky assets like cryptocurrency to safer options, causing prices to fall. At the same time, many traders who had bought Bitcoin using borrowed money were forced to sell when prices started dropping, leading to large liquidations and a chain reaction of more selling. Some big institutional investors and funds also sold their Bitcoin holdings, increasing supply in the market. In addition, Bitcoin often follows the trend of global stock markets, so when major markets decline, Bitcoin’s price can also fall. Higher interest rates also encourage investors to choose safer investments instead of volatile assets like Bitcoin. Together, these factors caused the recent drop in Bitcoin’s price.