Bitcoin's use in illicit activities significantly impacts its price. Criminals leverage its decentralized, pseudonymous nature for money laundering, drug trafficking, and ransomware payments, as seen in cases like the Silk Road marketplace. This association fuels volatility—prices surge when dark web adoption rises, drawing speculative traders, but crash when regulators crack down, like after the 2013 Silk Road bust when Bitcoin dropped 20%. Data from Chainalysis shows illicit transactions peaked at $14 billion in 2021, yet remain under 1% of total volume, suggesting hype amplifies price swings more than actual crime. Positive adoption by institutions often offsets this, stabilizing value. Still, media coverage of scandals, like the 2022 FTX collapse, reignites fear, driving sell-offs. Bitcoin’s price thus reflects a tug-of-war between its shady underside and mainstream promise.