A “Run on the Bank” occurs when a large number of people withdraw their funds simultaneously because they fear the bank may fail. In cryptocurrency, this idea translates to a rush to sell or withdraw assets from exchanges or wallets. These actions can often be triggered by rumors, sudden market drops, or security concerns.When panic spreads, it leads to increased selling pressure, causing prices to plummet even further. This can create a vicious cycle, as falling prices incite even more fear, prompting more withdrawals and sales.Exchanges may struggle to keep up with the volume of withdrawals, leading to delays or even temporary suspensions of services. Such situations highlight the importance of trust in the stability and security of platforms that manage digital assets.The result is often a loss of investor confidence, which can have prolonged consequences for the market and its participants. Understanding this concept can help investors navigate potential risks and make more informed decisions.