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Because it is falling. Really. We call it "free fall" rather than "weightlessness", because things in space still have weight; it's just that when we're falling, we don't FEEL the weight. We only feel it when we are RESISTING the weight, such as standing on the Earth, or sitting or standing. Make a parachute jump, and before you open your parachute you won't be "weightless", but you WILL be in "free fall".

So what's the difference between a satellite and a Basketball? The ball isn't going very fast, and it will hit the ground - and bounce. A satellite is moving SIDEWAYS so fast that by the time it has fallen, the satellite has already missed the Earth. And it KEEPS moving so fast that the satellite KEEPS MISSING! This happens because there is no (or very little) air in space, so there is nothing to cause the satellite to slow down.

The lowest practical orbits are about 120 miles up; much lower, and the satellite will encounter some tiny trace of air resistance, which will begin to slow the satellite down and cause it to fall to Earth. At that altitude, the orbital velocity is about 18,000 miles per hour.

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