Could Bitcoin go to zero? That is the question a lot of traders are asking again right now, and it is back in headlines after fund manager Michael Kramer warned that a fresh Bitcoin liquidity crisis tied to Treasury settlements could push prices even lower. At the time of writing, Bitcoin crash risk is climbing, Bitcoin downside risk is back in focus, and the whole Bitcoin going to zero conversation is picking up speed again. So no, Bitcoin going to zero is not the likely outcome here, but the pressure is real, and that is also why could Bitcoin go to zero keeps coming up in search bars and group chats alike.

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Bitcoin Liquidity Crisis And Crash Risk From Treasury Selloff

Bitcoin Liquidity Crisis Sparks New Crash Risk Talk

Michael Kramer, founder and CEO of Mott Capital Management, said in his latest note that Bitcoin acts as a strong liquidity indicator, and warned that Treasury settlements could drain about $150 billion from the system. That kind of number is a big deal, and it is also exactly the sort of thing that gets the could Bitcoin go to zero question trending again.

Michael Kramer said:

“In my experience, Bitcoin tends to be a better liquidity indicator than most other instruments. If the Treasury settlements are a drain on liquidity, then Bitcoin could be heading much lower.”

Bitcoin is down about 11% from highs above $82,500, and it broke support near $75,000 not long ago. Kramer says that kind of move points to rising Bitcoin crash risk and a deepening Bitcoin liquidity crisis, and traders watching the charts right now are asking could Bitcoin go to zero with a bit more urgency than usual.

Why Bitcoin Going To Zero Remains Unlikely For Now

Most analysts still treat Bitcoin going to zero as a fringe scenario, and there are a few reasons for that. Large holders such as MicroStrategy tend to buy dips instead of selling into them, and that buying steadily works almost like a safety net under the price. Standing buy orders are also said to exist at extremely low prices from some of Bitcoin’s biggest backers, and the United States has set up a Strategic Bitcoin Reserve, which gives the asset a kind of institutional floor most coins never get.

So while could Bitcoin go to zero is a fair question to ask, the answer right now leans toward no, not completely, even if Bitcoin downside risk stays elevated for a while.

Bitcoin Downside Risk And The Zero Question Going Forward

None of this erases Bitcoin downside risk completely, and sharp drops of 10% or more are not exactly rare for this asset. Critics still argue that Bitcoin is mostly speculative, and they are not entirely wrong, given how fast sentiment can flip when liquidity gets tight like it is right now.

Still, the could Bitcoin go to zero debate tends to fade once liquidity comes back into the system, and that has been the pattern for years now. At the time of writing, the bigger and more realistic risk sitting on the table is further Bitcoin crash risk and a longer Bitcoin liquidity crisis, not an actual trip to zero. And that is probably the most useful way to think about could Bitcoin go to zero as a question right now, less about an ending and more about how rough the next few weeks could get.