1. What causes a massive Bitcoin crash?
A Bitcoin crash often results from heavy selling, ETF outflows, leveraged liquidations, negative market sentiment, or global economic uncertainty.
2. Can cryptocurrencies recover after a major crash?
Cryptocurrencies like Bitcoin have historically recovered from multiple 50%–80% declines, but recovery depends on market demand, adoption, and economic conditions.
3. How do Stablecoins help during a Bitcoin crash?
Stablecoins act as a safer option to store value temporarily, reducing exposure to volatility while keeping funds within the crypto ecosystem for quicker re-entry.
4. Are Bitcoin ETFs safe during extreme market drops?
Bitcoin ETFs remove the need for direct custody but still reflect price fluctuations. ETF outflows during crashes can increase selling pressure and add to market decline.
5. What is the safest way to hold crypto during a market crash?
Cold wallets, multisignature storage, and keeping assets off exchanges reduce risks from hacks, platform failures, and panic-triggered withdrawals during market crashes.
