How do regulatory actions such as fines against Coinbase Europe and Samourai Wallet operations influence Bitcoin volatility?
Why is this the correct answer?
When authorities impose fines on major crypto platforms, investors face increased uncertainty about future regulatory crackdowns and compliance expenses. This uncertainty can induce short-term selling as participants try to reduce risk, which in turn increases price volatility. For beginners, think of fines as unexpected costs that shake confidence and cause some traders to exit positions quickly, leading to larger price swings.
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