Just curious to know - why does a baby's first head of hair fall out?

A newborn’s hair falls off due to the lowering of the level of pregnancy hormone previously present in his/her body. After the first “shed”, your baby’s hair will enter a new growth cycle. The hair that grows in this stage will be what your baby’s actual hair will be (and may likely appear different from the type he/she had when he/she was first born). The growth rate differs for every baby. For some, it may take up to two to three years to have a great head of hair.