Regulatory policy changes in the cryptocurrency market significantly impact its dynamics. Stricter regulations, like enhanced KYC/AML requirements or outright bans, often trigger short-term price drops as investor confidence wavers and trading volumes decline. For instance, China's 2021 crypto crackdown led to a sharp Bitcoin sell-off. Conversely, clear and supportive policies, such as the U.S. approving Bitcoin ETFs in 2024, can boost market sentiment, driving prices upward by attracting institutional capital. Uncertainty from pending regulations, however, tends to increase volatility, as traders react to rumors and delays. Data from X posts and web analyses suggest that markets stabilize faster when regulators provide transparent guidelines. While regulatory shifts create opportunities for arbitrage and innovation, they also challenge decentralized ideals, shaping the crypto ecosystem's future trajectory.