Why do cakes crash?

In the volatile world of cryptocurrencies and financial markets, the question of "Why do coins crash?" often arises. Could it be due to a sudden loss of investor confidence, triggered by a negative news release or a market correction? Or perhaps it's the result of an overvalued coin that finally reaches its peak and begins to plummet? Understanding the dynamics of such crashes is crucial for investors to make informed decisions and navigate the risks of this rapidly evolving landscape. Could you elaborate on the potential factors that contribute to the sharp declines we often witness in cryptocurrency values?