Bitcoin's use in illegal activities significantly impacts its price. Darknet markets, ransomware, and money laundering often rely on Bitcoin due to its pseudonymity and decentralization, driving demand among illicit actors. High-profile cases, like the Silk Road shutdown or major hacks, spark volatility—prices may surge from speculative interest or crash due to regulatory crackdowns. Data shows illegal transactions peaked at $14 billion in 2021, per Chainalysis, yet they’re a small fraction of total volume. Media coverage amplifies fear, causing sell-offs, while enthusiasts argue it’s a scapegoat, not the root issue. Still, as governments tighten crypto laws—like the EU’s AML rules—Bitcoin’s appeal to criminals may wane, stabilizing its price long-term. Short-term, though, illicit use keeps it a rollercoaster, balancing infamy with innovation.