Why does crypto market crash?

Why Does Crypto Market Crash?

Crypto markets can crash due to macroeconomic factors (e.g. interest rates, inflation), regulatory news, hacks or failures, or leverage unwinding (forced selling). Sentiment can shift quickly. Crashes are part of the risk. Do not over-leverage; use only risk capital. Have a plan before a crash (e.g. stop losses, not panic selling). In India, selling in a crash still triggers tax on any gains.