Market Sentiment: Public perception and macroeconomic news significantly impact investor behavior.
Regulation: Regulatory announcements or crackdowns from governments can create uncertainty.
Institutional Adoption: Increased involvement by large institutions or countries adopting Bitcoin can drive price fluctuations.
Technological Developments: Upgrades or security issues in the Bitcoin network may affect confidence.
Liquidity: Lower liquidity in the market increases volatility, as larger trades can have a more significant impact.
Global Events: Geopolitical instability or financial crises can increase demand for Bitcoin as a store of value or a speculative asset.