Cycle peaks expose fragility in the crypto markets. When positioning becomes crowded and leverage stacks up, even minor external catalysts can unravel everything quickly. A shift in regulatory stance, unexpected macroeconomic shifts, rate hikes paired with tightening liquidity, surprise tax policies—any of these can trigger rapid sentiment reversals. The math is simple: excessive leverage amplifies volatility, and crowded trades have nowhere to exit when momentum flips. External shocks don't need to be massive to matter. They just need to arrive at the right moment when market structure is already stretched thin.