TerraUST and Luna dropped to $0 after falling 100% in 3-days last month. Celsius Network token (CEL) plummeted 70% today, mimicking Luna’s crash. Bitcoin fell below $25,000 for the first time since December 2020, sending the crypto market into a frenzy. Can Bitcoin also crash to $0? is a popular question in the cryptosphere.
Yukun Liu and Aleh Tsyvinski of Yale University released ‘Risks and Returns of Cryptocurrency’ in 2018. Economists investigated Bitcoin plunging to $0 in a day. Yale researchers calculated Bitcoin’s risk-neutral disaster probability using historical returns.
The study found that Bitcoin is unlikely to drop below $0 anytime soon. The analysis says Bitcoin is unlikely to go to $0.
The study said Bitcoin’s chances of falling to $0 were 0% to 1.3%. Tsyvinski said not to panic because the Euro has a 0.009% chance of plummeting to $0.
Bitcoin falling to $0 is implausible, and a 100% crash may never happen. Read here to learn more about the Yale economists’ study.
All coins, big and small, are falling in the crypto indices today. The market could fall farther without a recovery. During this turbulent time, don’t mindlessly buy the dip. Bitcoin could plummet to $11,000, while Ethereum could hit three figures, say analysts.
BREAKING: #Bitcoin falls below $23,000 for the first time since December 2020.
— Watcher47 (@Watcher47com) June 13, 2022
Bitcoin is now 63.1 percent lower than its all-time high of $69044, and Ethereum is 72.7 percent lower than its all-time high. The market is already approaching perilous lows, and JP Morgan CEO Jamie Dimon has indicated that additional losses are on the way.
