A small market with big players
Compared to traditional assets, Bitcoin still has a relatively small market size. This means that even moderate trades can have a strong impact on the price — especially when large investors, called “whales,” are involved.
Speculation drives the market
Much of Bitcoin’s trading is driven by speculation. News, rumors, and emotions can cause sudden price swings as traders react quickly. This short-term thinking adds to the volatility.
Lack of regulation
Unlike traditional financial markets, Bitcoin is not centrally regulated. That means no circuit breakers, no coordinated price stability tools, and fewer protections — which leads to more extreme ups and downs.
Media hype and panic sell-offs
Media coverage can quickly influence sentiment. Positive headlines drive prices up, while negative news or government announcements can trigger panic sales — especially among newer investors.
