Chat
    150
    1
    MintDice Blog Post Image

    Why is Bitcoin Crashing: Top Reasons Cryptocurrencies Crash

    One of the most common questions we get asked, especially from those who don’t actually invest in Bitcoin, is why is it currently crashing? There are so many reasons Bitcoin fluctuates on a daily basis, and the true answer usually just depends on the situation.

    Even though there is no one reason that Bitcoin is crashing in March 2025, we are prepared to go over the most common reasons for the cryptocurrency to experience a dip. So, keep reading to learn all about why Bitcoin is crashing today.

    Pexels Tima Miroshnichenko 7567537

    6 Reasons Why Bitcoin Crashes

    As we mentioned above, there are many varied reasons why Bitcoin crashes, and it is likely that more than one of these factors is involved in each subsequent crash. That being said, it can be difficult to know exactly why cryptocurrencies crash, so this article should only be used as a general guide and not an end-all.

    1. The Economy

    In our opinion, the number one reason that cryptocurrencies crash almost always comes back to the economy.

    No matter where you live, cryptocurrency is generally seen as something extra, something to buy and invest in for fun or when you have a little extra cash. So, when that extra cash evaporates, you skip buying the crypto, and we think this is the same for a large majority of individuals around the world.

    Thus, when the economy begins to struggle, so too does the crypto economy, especially currencies like Bitcoin, which individuals may cash out when times get tough.

    2. Government Policies

    Government policies have always had a huge effect on cryptocurrency (outside of economic terms even), and one policy banning a certain crypto can send markets into a spiral.

    One example is when the Chinese government banned cryptocurrency several years ago, sending markets around the world into a spiral. Recently, we haven’t heard of any specific policies (other than maybe El Salvador) that could be affecting Bitcoin in such a massive way, but a lack of positive policies can have a similar effect, as people wait to buy until they see what the government has to say.

    3. A Scam Is Revealed

    Although Bitcoin is not a scam, a lot of cryptocurrencies are, and every time one is discovered, apprehension of all cryptocurrencies rises. It is important to recognize that while there are many viable projects in the crypto spaces, there are just as many that are scams, which is why we don’t recommend just buying any cryptocurrency.

    Bitcoin is usually a safe bet, as are Ethereum and Solana. That being said, remember that “safe” doesn’t always equal “profitable,” and your chosen investment may still fall when a scam of another token is revealed.

    Pexels Tima Miroshnichenko 7567236

    4. Cryptocurrencies Are Volatile

    It sounds stupid, but cryptocurrencies, which are often based solely on a law of supply and demand no matter how you look at it, are just volatile. People are so used to having government-controlled money that they have forgotten the instability of supply and demand.

    The truth is, supply and demand are a rocky way of setting prices, and government entities have done their best to stabilize natural rises and dips with regulations, interest rates, and more. Cryptocurrencies don’t have these controls, meaning you will see these fluctuations.

    Even though these fluctuations are natural, they can still be scary for someone who is uninformed, which is why you should only invest money you intend to lose in crypto—then you will be happy at any return you gain.

    5. Bad Publicity

    As with anything in life these days, news outlets have a lot of control over whether or not a cryptocurrency crashes. This is solely because of the way individuals consume media, which has led to companies often printing outrageous things about the owners of various platforms.

    Of course, this isn’t a major reason that cryptocurrencies crash, which is why it is 5th on our list, but it is part of the reason. If you need an example, just take a look at the recent Libra fiasco, where one media report sent the token climbing before causing it to crash. Also, the Trump token, which is currently crashing in response to media promoting Trump’s Tariffs.

    It’s important to note that media plays a larger part in the lives of smaller tokens and those that are just launching. Cryptocurrencies like Bitcoin and Ethereum are large enough that they have developed some media resistance.

    6. Trading Psychology

    Another aspect we need to discuss is trading psychology. Currently, there are many day traders who are involved in the crypto market. These day traders make professional decisions on their investments (and the investments of others) based on their feelings.

    Therefore, if they are fearful of the future, either because of government policy or the economy, they may shift their money around. Buying and selling of any sort triggers the supply and demand aspects we mentioned above, leading to price drops.

    Unfortunately, this is a vicious cycle, as one large trader moving assets can trigger large price drops that have other large players moving their assets as well. This can cause a massive price drop that can cause other non-professional traders to move their investments as well.

    Should You Sell Your Bitcoin?

    Overall, any major drop in the market can be scary, but we have to point out that Bitcoin has gone through this cycle for years. Every time it experiences a massive drop in price, once it stabilizes, it eventually climbs again, surpassing its former top price.

    Thus, we are optimistic and think that this is likely just part of the Bitcoin cycle and that, eventually, it will hit new heights, surpassing its previous top value. So, no, we don’t advise selling your Bitcoin right now. Both because you will take a loss, and because we expect it to bounce back. That being said, this is not official investment advice and you should discuss any questions you have with someone you trust who also has financial knowledge. Only they can truly advise you whether or not to sell certain investments right now.

    Crypto | Bitcoin | Bitcoin crash | Crypto crash | Cryptocurrency

    Check out our games!

    Wager cryptos with our provably fair casino games!