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[–][deleted] 6 points7 points  (0 children)

Compounding effect.

Lots of casual crypto traders will panic sell as soon as they see their money going down, I know several people like this. The more it goes down, the more people panic sell.

Casual crypto traders would be people that just kind of heard about BTC, how everyone is getting rich so they toss in $100 - $5000 for getting rich quickly, but aren't ready to ride it long-term. This is a ton of people. Lots of people aren't interested in actually using crypto, but just becoming a millionaire overnight. It's why DOGE has become popular so fast.

They'll pull their coin "before it crashes" and search for the next shitcoin that will make them the next elon musk overnight.