As the market turned invisible, bitcoin prices fell rapidly. The negative trend caused BTC's price to fall sharply. Despite speculation about its improvements, its direction is uncertain.
As the situation has changed, the volatility has increased and the value of the global cryptocurrency market has changed capriciously. Bitcoin remains the main victim of this situation, with its value continuing to fall since March 2022. Prices change quickly, and despite the efforts of investors, bitcoin hasn't stopped.
The negative situation is exacerbated by political decisions not to consider the crypto market. Beijing has made some decisions and eastern Europe remains volatile. It has had an impact on the global economy, which in turn has affected the value of BTC. Can't determine its next support level. Some critics, though, think BTC will fall to zero this time. Most of these concerns are unfounded because BTC has a strong foundation.
Here's a brief overview of the current situation with Bitcoin, whether it could crash to zero, and the implications for investors.
Downward trend in crypto market
The downward trend in the global crypto market has been in vogue for a long time. It took longer than expected compared to other times. While the previous cryptocurrency winter lasted more than a year in 2017-18, the current earthquake has been massive. The hope is that a prolonged winter will bring stability, but there will also be considerable losses.
The changes began in March 2022, when Russia's aggression in Ukraine escalated, affecting the overall economy. The resulting changes led to sanctions against the Russian Federation, which reduced the flow of capital into the market. BTC was valued at around $47,000 at the time because it tried to recoil but couldn't. It continues to fall, to $35,000, which remains a key range for its stability.
It didn't hold steady, but it took time to get to $30,000, but the market was in free fall. Bitcoin quickly fell to $20,000, and the losses didn't end there. On the contrary, it even reached $18,000, strengthening after fluctuations.
Could Bitcoin ever go to zero?
Critics of Bitcoin continue to share unfavorable opinions about the currency. Their main argument is that Bitcoin went to zero because they say its story will end. But it's not that simple. Instead, BTC has positioned itself as one of the most important commodities in the digital world. Bitcoin's volatility has raised concerns as investors do not want to lose their money. These zeroing speculations are based on the proposition that the rapid losses will not end until they are zeroed.
Terra UST's collapse has exacerbated those concerns, but Bitcoin is different. Investors need to understand how Bitcoin works before they believe predictions of its collapse. Bitcoin has an extensive network of 100,000 nodes, and most of its investors are long-term. Moreover, some investors believe it will one day become legal tender. So zeroing bitcoin requires a lot of effort. It would take tough sanctions and a loss of confidence in Bitcoin to bring it down.
What happens if BTC falls to zero?
While bitcoin's plunge to zero seems unlikely, it would create enormous political instability around the world. It needs to delist and waste billions of dollars to bring it to zero. In that case, both exchanges and investors would face the unattainable problem.
This would require a complete ban on mining and other related work, which would affect many users. In addition, many businesses use Bitcoin themselves, so it affects them. Thousands of people are losing their jobs as bitcoin mining stops, which will cause difficulties for the government. So the effects of bitcoin's fall will be profound.
conclusion
Even if the market is going through a rough patch, a bitcoin crash to zero seems unlikely. There are many reasons for it, because it has a solid foundation compared to other tokens. In addition, it will have a profound impact on businesses and individuals, affecting the entire market. Therefore, if BTC crashes to zero, it may cause difficulties.