The global crypto market saw mercurial changes in value as the turbulence increased due to changing situations. Bitcoin has remained the main victim of this 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 as they 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. There is no surety about the next support level for it. 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.
Here is a brief overview of the current Bitcoin situation, whether it will crash to zero, and the impacts on the investors.
The downtrend for the crypto market
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. It continued to lower as it fell to $35K, which remained a crucial range for its stability.
Though it didn’t stay stable, the fall to $30K took time, but the market saw a free-fall situation. Bitcoin fell speedily to $20K, and the losses didn’t see an end. Rather it even touched $18K, which saw enhancement after fluctuations.
Are there any chances of Bitcoin coming to zero?
Bitcoin critics have continued to share unfavorable opinions of it. Their main argument is the fall of Bitcoin to zero as they say its story will end. But it is not that simple. Instead, BTC has placed itself as one of the most significant commodities in the digital world. Bitcoin volatility has created fears as the investors don’t want to lose capital. 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 consisting of 100,000 nodes, while most of its investors are here for the long term. Also, some of the investors have a firm belief that it will someday become a legal tender. 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.
What happens if BTC crashes to zero?
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.
Bitcoin crash to zero seems an unlikely situation even though the market is going through a difficult phase. There are many reasons for it as it has a firm base compared to other coins. Also, it would have far-reaching impacts on businesses and individuals, affecting the overall market. Thus, it can create a difficult situation if BTC crashes to zero.