Could Bitcoin drop from $32 to $2 again? Good or bad?

Bitcoin seems to be on the move again... I bet some folks were super hyped by all those crazy predictions out there... "it's just gonna keep climbing forever!!!" which, honestly, doesn’t match my own journey with Bitcoin/Crypto/whatever you wanna call it. Remember when Bitcoin crashed from $32 to $2 on MtGox ages ago? That would be like seeing Bitcoin tumble from $125,000 down to around $7800. Is that even a possibility?

Very positive, but take a look at the aftermath since then, is it worth it or not, after the incidence of Mt. Gox and all series of fall, imagine we still have Bitcoin rising to stardom, proving its worth and value, that is why we believe in time, we don't act when it's highly volatile, instead we hold to get on the right position and maintain it, if the market go down to $60,000 today, Bitcoin will still make all time high sooner or later, we have series of activities that can help achieve this, may have target on the next halving and so on.

Is that possible? Nothing is impossible in the crypto market, but the chances of that happening are very low. We have more exposure compared to the 2014 Mt. Gox collapse, even if Binance were to be hacked and lose more funds that affect the exchange to the extent of it filing for bankruptcy. I don't think we can quickly move from the $85k we are currently on now down to $7500. Even when Terra Luna (FTX exchange) crashed, Bitcoin only dropped by about 33%+ from its all-time high. With so many institutional investors in play, I don't consider that happening. That Bitcoin falling from $126,000 down to $7500 would be one of the biggest dumps aside from Mt. Gox, which should be more than -93%.

For me, this is not possible anymore. It's totally different now, the first thing is the market cap and/or the trading volume. That kind of dump is too much for the current market cap of Bitcoin. So for me, I will not expect that.

It is not possible. The price bitcoin fall to in the last bear market was $15400. Bitcoin can not fall up to that anymore, I expect bitcoin not to fall more than $50000 during bear market. I do not yet make analyses about it but this is more about what I think. Mt. Gox was also an exchange hack. An exchange that has 70% of bitcoin on exchanges, while other exchanges had 30% of bitcoin on exchanges. The way there is competition now, it is not like that now.

It's really hard to compare what happened during that time. It's not apples to apples comparison. There are no liquidity, and as far as I know, Mt. Gox has 90% of the trading volume. Right now we have hundreds if not thousands of exchange already. Massive institutional money flowing in the market. ETF's will billions in-flows. Far deeper liquidity obviously. So it's unlikely that we will have this kind of dumps or crash that will put the market to ~7,800.

It will take more than a MtGox issue to bring Bitcoin down to that amount you predicted. Issues like the US government banning Bitcoin, all the ETF dumping all their coins and all the exchanges collapsing before the price might drop drastically. But I don't see this event happening at once anyway. The government is now involved and making laws to protect investors and depositors that it will be difficult for exchanges to collapse like the MtGox issue. The effect was too much because MtGox controls a large part of the Bitcoin exchange market. Binance which is the biggest exchange, has about 40% to 46% of the market. The market is more divided.

This could happen only if there's a global ban over Bitcoin and crypto in general. Most governments around the world aren't hostile towards Bitcoin/crypto right now. Another possible case scenario would be Quantum computers destroying cryptography and disrupting the entire blockchain, but I'm sure that the developers would upgrade the protocol to become Quantum resistant. Many experts claim that the current price bottom for BTC is 70K USD. I wouldn't be surprised if the prices drops below that price bottom. We might have to wait for a bull run somewhere around 2028.

Yes, thats the thing, the Bitcoin ecosystem is different now, it has more exposure, more adoption, generally more people have some form of market knowledge. First glance of the OP I thought it read "from $125,000 to $78,000" and I thought that was possible but a drop further to $7800 - not likely, there would be overwhelming buy pressure well before that, it would never get the chance to drop that much. Think about it anyone who didnt sell at the height and HODL'd would have a great opportunity to DCA at $50,000 or even $25000 and below. The true believers in Bitcoin would be buying and any discounted price.

It will no longer be possible to return to that price. Bitcoin many years ago and Bitcoin today there is a lot of difference between the total and what remains. Many parties continue to adopt Bitcoin so that the possibility of scarcity becomes stronger, although not in a short time. Maybe you are experimenting with this topic, but various things make me maintain that seeing the price of Bitcoin return to that number is something that is impossible to happen with the various steps taken to analyze it.

Technically possible. But not really possible. I mean you are trying to equate one market cap with another. The market cap back when it was $32 was basically the sums of some very slim orderbooks on a few exchanges. Nowadays Bitcoin's market cap is up there with gold and Apple. So such a steep move would not happen unless there was some black swan event like someone inventing tech that makes money redundant. Then yes, Bitcoin would only be for a few enthusiasts but not really of any value to no demand.

Nothing is impossible but no. What you are forgetting is that price didn't go from X to Y losing >80% of its value just because it was X dollars. Instead the bubble burst. Take 2017 which is the closest thing and most people remember it better than they remember $2 days. Bitcoin had a solid rise in the years leading to last months of 2017 and it had reached $7k to $9k naturally. Then all of a sudden we saw a massive surge where price went from $9k-ish all the way to $20k which is more than a 100% rise. That was a bubble aka bitcoin was overpriced by a lot. So the bubble had to burst and price had to come down. Therefore we saw a "burst" which is a catastrophic price crash and price came all the way down to more realistic price of $7k to $9k. But the problem is when a bear market starts and we see a massive crash, it continues going lower and lower so price kept going down reaching $3k and forming a reverse bubble™ since by then bitcoin was extremely undervalued. So now you tell me, are we in a bubble? Why? Just look at the charts, $100k+ was reached with a very solid rise and price was realistic. There is no reason to call it a bubble to then expect a bubble burst and such a massive crash similar to the past cases. With all that said, if we end up seeing a big crash (>80%) it will be the first of its kind and unlike any previous ones. Simply because unlike all those other previous crashes, we are not in a bubble. Not even close to a bubble. Why is price going down then? As I've been saying for the past 4 years: worsening global recession and global wars (cold, economical, food, armed... wars).

Bitcoin is still a speculative asset and relatively new compared to other traditional assets but things have changed dramatically. It has matured a lot compared to ten years ago and has become one of the top 10 assets in the world. So the scenario of bitcoin price falling from $125k to $8k, which is a drop of more than 93%, is very unlikely. Such a scenario could only occur if a sufficiently large black swan event hits the market. The collapse of centralized exchanges or an economic recession is unlikely to have such catastrophic consequences for bitcoin. But if that happens, and whether it's good or bad, will depend on what causes that bitcoin crash.

Anything is possible but I leave that to the Bitcoin chart itself, there are good times to start accumulating Bitcoin and not be delusional about it, if I see Bitcoin at $45,000 again I will start buying, 7800 is possible but not guaranteed, many people missed the 2022 bottom because they expected Bitcoin to go below $10,000, many will be left behind again this time around.. If the institution investors want Bitcoin value to crash even more they have the power to manipulate the market and they also have big bags of Bitcoin in holding, even after selling some portion, all they have to do is create some FUD and dump every Bitcoin they have, but retails who are gullible will believe that Bitcoin will never find it's way again. The best time to start to DCA is coming, do not wait for some ridiculous price before you start taking actions again.

This is a good advice and I would give same because despite the dip Bitcoin currently faces, there would be a pump to even out the losses that investors are currently experiencing. So just be patient and ride out the waves of the this bearish season because it is speculation that mostly drives its price and some institutional policies made by world powers in a bid of control or selfish interest. Those who already have DCA investment should keep holding and accumulating even if it is a reduced fraction of what they would normally invest when the price was higher.

That speculation has sense since as we can see the market is officially on bearish trend now. We don't know on how long this situation will exist and it seems that Bitcoin has a chance to hit that lowest point. But I always really think that there's no good to panic then sell their holdings, but rather people should always choose to continue their DCA and grab the opportunity to buy Bitcoin when this current trend still happening. To bad for them if they get carried out with their fear and pause because when market pumps back they provably won't get anything.

Nah. I doubt it will get lower than $70k. I know with Bitcoin we can't really be sure, but for it to get to $7800, it would mean almost everybody would be willing to sell. We're talking to almost everybody who holds bitcoin. A lot of people wouldn't want to take that loss, so they will continue to hold. At the very worst, I believe the price will be in the $70k region. This is because a lot more people will still hold strong on the demand will not fall as much as it did in the past. if a situation like MtGox or FTX happens during this bear market, that is when we can expect the price to fall below $50k.

It is possible because there is no certainty in crypto. The price can go wild and out of our prediction. No one predicted that the price would drop to what it is now but it happened. Making people panic and think that this is the end of Bitcoin. But those with strong hands will not let the chance to buy Bitcoin at a low price slip away. They will make sure they buy as many Bitcoins as they can especially if the price keeps going down.  But let's wait and see what will happen so we can decide what we need to do.

Up forever as a phrase is about the same as firing the starter gun flare into a bale of hay, disastrous words for caution probably a sell.   Its a good idea always to measure sentiment as extremes indicate ends of the market range. If everyone stands on the same side of a rowing boat, expect to get wet soon after.  Upsets happen when everyone agrees because a market is ironic and it needs both buyers and sellers.      I did not think BTC was overly positive to an extreme but I was worried by leveraged companies buying BTC to write on a balance sheet, boast perhaps and do nothing with it?   That's not bullish to me, I'd rather see BTC with people shining shoes in the street humble as they might appear but if every day they have a use and utility gain from BTC's regular unique composition that's more positive.   I'm being told people who only care about numbers switch from BTC to another asset or sector now but I do think BTC can be useful to the world & price isnt everything luckily.

Anything is possible when it comes to Bitcoin price and it is possible for the price of Bitcoin to get to this amount. If it falls to this amount only few will be glad because it will be an opportunity for them to buy more Bitcoin but a lot  of people will be very worried because of the expectations they have on bitcoin. It is not a bad one if Bitcoin falls to that amount,  it is even an opportunity for hodlers to accumulate bitcoin because a lot of people are even hoping if they can get bitcoin in a lower price like that in few years ago.