Bitcoin prices have seen a speedy fall in value as the market has turned recessive. The negative trend has deprived BTC of a significant amount in its price. Though there are speculations regarding its improvement, there is no surety about its direction. Bitcoin has remained the main victim of the macroeconomic situation, which has seen a continuous decrease in value since March 2022. The changes have been speedy for their price, and they have seen no halt despite efforts from the investors.
The negative situation has been exacerbated due to some political decisions that do not regard the crypto market. The Chinese government has made some decisions while Eastern Europe also remains turbulent. It has had impacts on the global economy, in turn impacting the value of BTC. While some critics are of the view that BTC will crash to zero this time. These fears are mostly unfounded as BTC has a strong base.
The downtrend for the global crypto market has remained in vogue for a long while. It has been longer than expected compared to other times. Though previously, crypto winter lasted for more than a year in 2017-18, the current quake is of a tremendous magnitude. There are hopes that the ongoing winter will bring stability, though considerable losses in the meantime.
The changes began in March 2022 when the Russian aggression on Ukraine escalated, affecting the overall economy. The resulting changes led to sanctions on the Russian Federation, which lowered the flow of capital to the market. BTC value ranged $47K back then as it tried to recoil but couldn’t.
Bitcoin critics have continued to share unfavorable opinions of it. But it is not that simple. Instead, BTC has placed itself as one of the most significant commodities in the digital world. These speculations for its price coming to zero have been based on the proposition that the speedy losses won’t know any end before taking it to zero.
The collapse of Terra UST has led to furthering these fears, but Bitcoin is something different. Investors need to understand how Bitcoin works before believing in predictions regarding its collapse. Bitcoin has a wide network of 100,000 nodes, while most investors are here for the long term. So, it would take a lot of effort to bring Bitcoin to zero. It would take strong sanctions and loss of faith in Bitcoin to bring it to a collapse.
Though the fall of Bitcoin to zero seems impossible, it would create huge political instability across the globe. It would need delisting and waste billions of dollars to bring it to zero. In such cases, both exchanges and investors would face problems that make it impossible.
It would require a complete ban on mining and other relevant jobs, which would affect many users. Also, many businesses own use Bitcoin, so it would affect them. The unemployment of thousands of people due to the halt in Bitcoin mining will create a difficult situation for governments. Thus, the impacts of the fall of Bitcoin will be far-reaching.