Will Bitcoin Go To Zero? Inside The Market Reshaping Crypto, AI, Gold

Bitcoin is down 30% from its peak and gold is down from $4,200. according to financial times, The Nasdaq had its worst week since April 2025, especially tech-heavy companies. Many of my friends ask me “Will Bitcoin go to $0?” After believing in the potential of the assets described therein Forbes article When Bitcoin reached $126,000!

When “digital gold” collapses alongside physical gold, and darling AI stocks fall apart together, are we seeing a fundamental shift or just a stunning correction? Is this the big crash of 2025 where everything falls together?

It is unusual for everything to go down together, including those tools that usually have opposite properties. So I did some research to find out what was going on.

The bottom line is that the 2025 crash is not just a Bitcoin or AI story. It’s really a story of fluidity.

Liquidity stories rewrite correlations.

What’s happening in the market and Bitcoin?

Just one month ago, According to CME’s FedWatch tool, The probability of the federal government reducing interest rates was 93.7%. Now the probability of a cut has dropped to 44.9%, which is a significant drop in a short period of time. When investors realize that they are all collectively wrong about the Fed’s direction, they all correct themselves at the same time.

Interest rate cuts typically boost stocks and alternative assets like gold and digital assets, making borrowing cheaper and cash less expensive. When this turns out to be untrue, the opposite happens, and at some point, as in 2025, a brutal reversal occurs.

Meanwhile, there is talk of an AI bubble.

According to CBS News analysts“There is a recognition that if they (companies) spend all this money on data centers, it will impact their profits.” The numbers tell a stark story. Microsoft and Google collectively announce spending of more than $250 billion on combined AI infrastructure for 2024-2025, yet their revenue streams remain largely unspecified in earnings calls.

Even more worrying is that enterprise software companies riding the AI ​​wave are showing a disconnect between promise and performance. Palantir trades at 180x trailing earnings while customer acquisition costs more than doubled year over year. Dotcom’s buzz is unmistakable.

A recent McKinsey report found that only 23% of companies using generative AI are seeing measurable productivity gains, yet these same companies are increasing their spending on AI. Everyone has been talking about the value that AI brings to businesses, however Artificial intelligence has been difficult to measure Hardly any company talks about its results.

Even the FANG companies (Facebook, Amazon, Nvidia, Google) are having problems. Nvidia reported positive revenue growth, but its stock price fell. It really shows that in these volatile times, even great execution cannot overcome market inertia. Note: Circular revenue didn’t help either. According to the recordNvidia was going to invest $100 million in OpenAI, and OpenAI was in turn going to buy $100 million in Nvidia chips, so it looked like Nvidia was funding its own revenue.

Finally, the US dollar rose in the past three months to its highest levels. This makes purchasing gold, bitcoin, and other assets more expensive for international buyers. So breaking the traditional safe haven of gold meant that investors did not rush to buy gold and other precious metals. Gold lost its defensive position as the dollar rose, providing no place for investors to hide.

Bitcoin death spiral or growing pains?

Right now, Bitcoin moves with stocks, not as a hedge. This reality refutes the narrative that Bitcoin is digital gold. ABy massinstitutional investors secured $900 million from Bitcoin ETFs. When the market needed Bitcoin to move independently, it instead moved in concert with technology stocks. In fact, gold, stocks, and long-term bonds outperform Bitcoin.

However, Bitcoin’s history is all about resilience, and its history is full of sharp declines and amazing recoveries. Although this time is a little different, as institutional investors, pension funds, corporations and ETFs are betting on Bitcoin, these factors are creating a foundation that did not exist in the past. It provides ground and legitimacy that did not exist before.

Demand for downside protection rose by about $80,000 to $85,000. The question is not whether Bitcoin will survive, but how it will emerge from the crucible it is in now.

Broader market message for Bitcoin investors

The 2025 crash reveals a fundamental shift in how markets work. The broader market message signals the end of easy money and a focus instead on real value. Investors are now not looking at speculation but at fundamentals. These basics are the same for AI companies, Bitcoin traders, and the entire industry.

The fact that we may be in the AI ​​bubble does not affect some people. “Bubbles are a tool for innovation,” said Robert Metcalfe. “They cause innovation to happen that would not otherwise happen.” According to Sarbjit Johal, “Bubbles are the self-healing mechanisms of a system that works as designed.”

But now we have the problem of interconnection. Institutional investing has now created new correlations between cryptocurrencies and traditional technology stocks. When the Nasdaq falls in its worst week since April 2025, Bitcoin is no longer acting as a hedge and is now amplifying the decline.

In 2013, Bitcoin rose significantly, technology stocks remained flat, and gold collapsed. Then in 2018, cryptocurrencies sold off while technology stocks soared. In 2025, for the first time, everything from gold to Bitcoin to AI stocks corrected on the same day. This is the hallmark of a liquidity-driven market.

The result is a market where traditional diversification fails.

What to watch: The next 90 days will tell the story of Bitcoin

Within the next 90 days, the immediate trigger will be the Fed meeting on December 18th. If the Fed lowers interest rates, we could see a comfortable rise in risk assets by the end of the year. But watch the Fed’s guidance for 2026. Any sign of higher interest rates for a prolonged period could trigger another sell-off.

For Bitcoin, watch three levels: $85,000 represents institutional support where large ETF inflows occurred. A break below $75,000 would indicate another problem, and above $95,000 would confirm that the bull market is still intact. These levels will be tested over the next 4-6 weeks.

AI stocks are on a different timeline. The tell-tale sign will be the Q4 earnings season. Companies must demonstrate a strong ROI from AI investments. Watch Nvidia’s guidance on data center ordering and FANG AI revenue disclosure. If either is disappointing, there could be another sector-wide correction.

Will Bitcoin reach $0?

Bitcoin is unlikely to reach zero, but this collapse points to something deeper. This means that Bitcoin has now gone from being a revolutionary outsider to an established player.

The real question now is not survival but identity.

What will happen to a digital asset that was designed to be uncorrelated when it now moves in lockstep with the Nasdaq?

This identity crisis is not temporary. The next decade of Bitcoin faces a simple choice: does it remain a macroeconomic-sensitive institutional asset or does it rediscover its independence.

The institutional path means that Bitcoin is trading like a high beta technology which is driven by Fed policy and fund placement. The decentralized path requires different catalysts: greater self-protection, stronger second language adoption, higher on-chain stablecoin flows, and sustainable mining economics.

The current generation of Bitcoin holders have bought into the “digital gold” narrative. The next generation will determine whether Bitcoin is able to regain its revolutionary purpose or accept its fate as just another asset in a diversified portfolio.

We’ve just completed the post-2020 Everything Gathering. Now, it’s back to basics.

In markets, as in life, the most interesting transformations happen when everything seems to fall apart at once. What emerges from this chaos may be unlike anything that has come before for Bitcoin, and that may not be all bad.