02 / Separate the trigger from the mechanism
Why a decline can become harder to absorb.
A headline can change what buyers are willing to pay. But the size of the resulting price move also depends on the orders available and the positions already in the market. These are general mechanisms to investigate, not measurements of how much each contributed in April 2025.
Changing demand
People may reduce exposure when they become less confident or need cash elsewhere. A buyer who lowers a bid can affect the next available trade even without issuing a public statement. Price alone does not reveal that person's reason.
Limited liquidity
If little buying interest is available near the last traded price, a sale can fill at lower prices. The amount and quality of available orders matter. High reported trading volume does not, by itself, tell you what price your order will receive.
Leveraged positions
Borrowing or margin increases exposure relative to the money committed. Adverse moves may require more collateral or closure of a position. The CFTC warns that leveraged futures losses can exceed the initial investment.
A separate issue is the arithmetic of a recovery. The percentages do not cancel out because the starting value changes. In this invented example, a holding falls from $1,000 to $750. That is a 25% loss. A subsequent 25% gain on $750 adds $187.50, leaving $937.50, not the original $1,000.
Returning from $750 to $1,000 requires a gain of about 33.33%, before fees or taxes. These are hypothetical dollar values, not Bitcoin prices, historical returns or a prediction. A lower price does not guarantee that the earlier value will return.
Understanding a mechanism is different from proving that it caused a specific market event. A claim about liquidation totals or fund withdrawals needs its own dated dataset and a clear explanation of what is being counted.