Bitcoin has long been a polarizing force in the financial world — celebrated by some as digital gold and dismissed by others as a speculative bubble. In recent months, its price has plunged dramatically, sparking renewed debate: Could Bitcoin eventually become worthless?
After peaking near $20,000 in late 2017, Bitcoin entered a steep downturn, losing over 80% of its value within a year. By November 2025, it had fallen below $3,500, marking a 44% drop in just 11 days. This sharp decline didn’t just affect Bitcoin — the broader crypto market followed suit, with 73 out of the top 100 digital assets dropping more than 30% in a single week.
But what’s behind this collapse? Is it technical instability, market manipulation, or a fundamental lack of value?
The Onset of the Bear Market
For investors like Li Chao, a Beijing-based entrepreneur who bought Bitcoin at ¥55,000 (~$8,000), the crash has been devastating. “I thought I was making a smart long-term investment,” he said. “Now it feels like half my capital is gone.”
He’s not alone. Many early adopters and institutional players alike have watched their portfolios shrink amid growing uncertainty.
👉 Discover how market cycles shape crypto investments — and how to stay ahead.
The downturn has hit miners especially hard. With Bitcoin’s price falling below the cost of electricity for many mining operations, profitability has vanished. One miner reported earning only 30 Bitcoins over several days — not enough to cover power costs. As a result, many have shut down their rigs entirely.
Even major players are struggling. Giga Watt, once one of the world’s largest mining facilities, filed for bankruptcy protection in November. Meanwhile, Bitmain, China’s dominant mining company, saw its flagship models — including the Antminer T9 and S7 — reach “shutdown price,” where mining generates no profit.
Worse still, high-end mining equipment that once sold for tens of thousands of dollars is now being sold by the pound for as little as $15 — discarded like electronic waste.
Was the Crash Man-Made?
Some believe the crash wasn’t purely organic. Craig Wright, known in the crypto world as "Craig Wright" or controversially as "Satoshi Nakamoto," claimed responsibility for triggering the sell-off. He admitted to selling large amounts of Bitcoin to fund operations on the Bitcoin SV (BSV) blockchain.
This revelation fueled suspicions of market manipulation.
U.S. authorities have long investigated whether stablecoins like Tether (USDT) are used to artificially inflate Bitcoin prices. Bloomberg reported that the U.S. Department of Justice has focused on Tether and its ties to Bitfinex, alleging coordinated efforts to manipulate BTC markets.
Researchers, including Professor John Griffin from the University of Texas, have published studies suggesting that Tether was used during bull runs to buy Bitcoin and prop up prices — a practice critics call "price spoofing."
While Tether’s compliance officer dismissed these claims as “coordinated attacks,” the perception remains: Bitcoin may be decentralized in theory, but concentrated power lies in the hands of a few.
Large exchanges, mining pools, and whale wallets can move markets with massive trades. According to Goldman Sachs' 2015 data, RMB-denominated trades once made up 80% of global Bitcoin volume. Though China banned ICOs and shut domestic exchanges in 2017, similar centralization risks now exist in U.S. financial institutions offering Bitcoin futures.
These instruments allow traders to bet against Bitcoin — potentially accelerating downward momentum during volatile periods.
The BCH Fork War: A Catalyst for Chaos?
Another key factor in the crash was the Bitcoin Cash (BCH) hard fork in November 2025.
A power struggle erupted between two factions:
- BCH ABC, led by Bitmain CEO Wu Jihan
- BCH SV, backed by Craig Wright
This wasn’t just ideological — it was a battle for computational dominance. Both sides deployed massive hash power to secure their chains, consuming resources that might otherwise support Bitcoin’s network.
According to Liu Xiaolei, Finance Professor at Peking University Guanghua School of Management, this算力 war may have shaken investor confidence in Bitcoin’s stability.
“Even though the conflict was about BCH,” she explained, “the fear spread to BTC markets. Investors worried the same kind of destabilizing warfare could happen to Bitcoin.”
Before the fork, Bitcoin traded around $6,300. Within days, it dropped to $5,000. When Wu Jihan’s faction gained control and Craig Wright redirected his mining power back to BTC, prices stabilized temporarily.
But critics argue that such events expose a deeper flaw: Bitcoin’s price is vulnerable not just to technology shifts, but to personal rivalries among powerful figures.
As one industry insider put it: “Who really lost? Not Wu or Craig. They likely profited from shorting BTC. The real victims are retail investors — the so-called ‘crypto peasants.’”
Does Bitcoin Have Intrinsic Value?
Warren Buffett once said: “I can’t value Bitcoin because it doesn’t produce anything.”
That critique cuts to the core issue: Bitcoin lacks intrinsic utility.
Unlike stocks (which generate earnings), real estate (which collects rent), or commodities (like gold with industrial uses), Bitcoin serves primarily as a speculative asset and medium of exchange — but even that function is limited.
China’s central bank classifies Bitcoin as a virtual commodity, not legal tender. It has no backing from governments or physical assets. Its value rests entirely on market sentiment and perceived scarcity.
When demand weakens — due to macroeconomic conditions, regulatory crackdowns, or loss of faith — prices collapse.
Huang Yiping, an economist, agrees: “Without real-world use cases or economic fundamentals, Bitcoin’s price swings are driven purely by emotion — greed during rallies, panic during crashes.”
And when trust erodes?
👉 Learn how investor psychology drives crypto cycles — and how to navigate them wisely.
Could Bitcoin Go to Zero?
Some experts say yes.
Liu Ge, senior fellow at Renmin University’s Chongyang Institute for Financial Studies, argues that Bitcoin’s credibility has been overextended.
“In small circles, Bitcoin holds value because people trust it,” he said. “But once it enters mass consciousness and becomes a cultural phenomenon — like tulip mania — that trust becomes fragile.”
He draws a parallel to fiat currency: even government-backed money fails when confidence collapses (e.g., Zimbabwe or Venezuela). For an unbacked asset like Bitcoin, the risk is even greater.
“If Bitcoin’s credit evaporates,” Liu warned, “its value could fall all the way to zero — and take other cryptocurrencies down with it.”
Historical bubbles suggest he’s not entirely wrong. After the tulip crash in 17th-century Holland, no flower sparked similar frenzy. Could crypto face the same fate?
The Role of Regulation
Regulation may be Bitcoin’s only path to stability.
The U.S. is exploring Security Token Offerings (STOs) as a regulated alternative to ICOs. By tokenizing real assets — equity, debt, revenue streams — STOs offer transparency and legal accountability.
Eight Dimension Capital’s Wei Zheng believes STOs could revolutionize fundraising: “They offer higher efficiency and global access compared to traditional finance.”
But others see STOs as a betrayal of crypto’s original spirit. CoinTiger founder Ling Fengqi criticized them as “a surrender to Wall Street,” turning decentralized rebels into compliant corporate instruments.
Still, without regulation, markets remain prone to manipulation and volatility.
Frequently Asked Questions
Q: Can Bitcoin really go to zero?
A: Yes — if confidence collapses completely and demand disappears. While unlikely in the short term, prolonged bear markets or systemic failures could erode its base value.
Q: What caused Bitcoin’s 2025 crash?
A: A mix of factors: macroeconomic tightening, reduced demand from black markets and startups, mining unprofitability, and psychological pressure from the BCH fork war.
Q: Is Bitcoin mining still profitable?
A: For most miners, no — especially those without access to cheap energy. Many older models now operate at a loss.
Q: Who controls Bitcoin’s price?
A: No single entity does — but large holders ("whales"), exchanges, and mining pools can significantly influence price through coordinated actions.
Q: Does regulation help or hurt Bitcoin?
A: It depends. Overregulation may stifle innovation, but smart regulation can increase trust and attract institutional capital.
Q: Could another cryptocurrency replace Bitcoin?
A: Possibly — if a new blockchain offers better scalability, security, or utility. But Bitcoin’s first-mover advantage and brand recognition remain strong.
Final Outlook
Bitcoin’s future remains uncertain.
Technologically resilient and globally distributed, it has survived multiple crashes. Yet its value hinges on belief — not cash flows or tangible output.
Without broader adoption as a payment method or integration into real economies, it risks remaining a speculative instrument vulnerable to boom-and-bust cycles.
Whether it recovers to $20,000 or falls toward $1,500 (as Bloomberg analyst Mike McGlone predicted), one lesson stands clear:
👉 Stay informed on real-time trends and make smarter moves in volatile markets.
The road ahead demands caution, clarity — and above all, critical thinking.