A decline in Bitcoin's price impacts the supply-demand balance of cryptocurrencies in several ways. On the demand side, lower prices may deter new investors, reducing buying pressure, while existing holders might sell to cut losses, further depressing demand. However, bargain hunters could see it as an opportunity, potentially stabilizing demand. On the supply side, miners face reduced profitability as rewards in Bitcoin are worth less in fiat terms, possibly leading some to scale back operations or exit, tightening supply over time. Yet, if selling intensifies among holders, supply could temporarily flood the market. The interplay depends on market sentiment, investor behavior, and external factors like regulation or macroeconomic trends. Historically, Bitcoin’s price volatility has tested this balance, often amplifying broader crypto market dynamics.