@cddee
Regulatory changes, such as stricter rules or outright bans, can create significant uncertainty and volatility in cryptocurrency markets. Positive regulations, like clearer tax guidelines or approval of crypto as legal tender, can boost investor confidence and lead to price surges. Conversely, negative regulation, such as restrictions on exchanges or the banning of certain crypto activities, often triggers market sell-offs as investors fear limited future growth or legal risks. The uncertainty around evolving global regulatory environments can cause market fluctuations, as traders adjust their expectations based on potential regulatory outcomes.
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