Bitcoin's use in illicit activities significantly impacts its price. As a decentralized cryptocurrency, it attracts illegal transactions—like drug trafficking and money laundering—due to its pseudonymity. High-profile cases, such as the Silk Road shutdown, often trigger price volatility. When law enforcement cracks down, public perception sours, leading to sell-offs and price drops. Conversely, illicit demand can inflate prices during periods of unrestricted darknet activity. Data from Chainalysis shows illicit transactions account for less than 1% of Bitcoin’s total volume in 2024, yet their influence persists due to media amplification. Regulatory responses, like stricter KYC rules, aim to curb misuse but can also suppress market enthusiasm. While Bitcoin’s price is driven by speculation and adoption, its association with crime remains a double-edged sword—fueling both fear and fascination in equal measure.