Analysts Uncover 5 Factors Behind Bitcoin's 8% Price Drop

Market Volatility

Bitcoin, like other cryptocurrencies, is prone to significant price fluctuations due to factors such as market sentiment, regulatory changes, and supply and demand imbalances.

Supply and Demand

When the supply of Bitcoin exceeds demand, its price tends to decline. In recent months, there has been a significant increase in Bitcoin supply, including the release of new coins from miners and the unlocking of coins from investors. This increased supply has put downward pressure on the price.