Question #311 ·
What led Bitcoin market sentiment to fall to its lowest in two years after the price dropped from $126,000 to around $84,000?
- Steep price decline triggered panic selling leading to extreme fear reducing sentiment Right answer
- Major exchange hacked causing investors to lose funds and dread entering market
- High Bitcoin transaction fees deter trading causing frustration and pessimism among investors
- Government bans Bitcoin mining operations causing widespread investor panic and fear today
Why is this the correct answer?
This is correct because the dramatic drop from around $126 000 to $84 000 caused many investors to panic and sell quickly. In beginner terms, a sharp price fall makes people worry about further losses. That fear becomes contagious as more investors sell, pushing sentiment to its lowest level in two years.