When illegal activities in the cryptocurrency market are exposed, such as a well - known cryptocurrency project being accused of defrauding investors, market confidence is severely hit. Regulatory authorities strengthening crackdowns may cause some investors to panic - sell their cryptocurrencies, leading to a short - term decline in market prices. At the same time, some potential investors who originally planned to enter the market may postpone their investment decisions due to risk concerns, further affecting the capital inflow and price trend of the market. However, as regulatory measures are continuously implemented and the market gradually becomes more regulated, prices may stabilize and return to a reasonable value range in the long run. During the different stages of illegal activity exposure and regulatory strengthening, to assess the market price's stress response, indicators such as trading volume, market capitalization changes, and investor sentiment need to be monitored.