When extreme market conditions occur in the cryptocurrency market, such as sharp price drops or surges, regulatory agencies may take different measures. In the case of a price surge, they may increase scrutiny to prevent market manipulation and ensure consumer protection. For a price drop, they may release statements to calm the market or conduct investigations if there are suspicions of illegal activities. These measures can impact the market's subsequent trend. For example, increased regulatory scrutiny may lead to a short - term price correction as investors become more cautious.