Market sentiment is a major driver of volatility in the cryptocurrency market. Positive news, such as regulatory approvals or partnerships, can spark a wave of buying, leading to price surges. Conversely, negative news, like security breaches or government crackdowns, can cause panic selling and sharp declines. Social media amplifies these effects, as rumors and viral trends can spread rapidly, influencing retail investor behavior. Given the emotional nature of the crypto market, sentiment-driven fluctuations often result in larger and more frequent price swings compared to traditional markets.