1. Market fluctuation: There is drastic price fluctuation in the cryptocurrency market, and the price will be affected by various factors, including market sentiment, investor confidence and market demand. Large-scale selling or panic in the market has led to a rapid decline in the price of cryptocurrency.
2. Strengthen supervision: The cryptocurrency market has always faced regulatory uncertainty and policy risks. If the regulators take severe measures or introduce policies that are not conducive to cryptocurrency, investors will lose confidence, leading to large-scale market selling and price decline.
3. High investment liquidity and handling fee: Investors are faced with the problem of not being able to buy and sell core coins quickly. The high handling fee of the exchange leads to the decrease of investors' interest in the currency, which in turn affects the relationship between supply and demand in the market and leads to the price drop.