Yes, a company can lose all its value and have that be reflected in its stock price. (Major indexes, like the New York Stock Exchange, will actually de-list stocks that drop below a certain price.) It can even file for bankruptcy. Shareholders can lose their entire investment in such unfortunate situations.
One may also ask, where should I invest if the stock market crashes?
If you think a crash is likely to occur, you might want to look into some of them.
Any way, what should I do if the stock market crashes? What should you do after a stock market crash?
Anyhow, how will a recession affect Bitcoin?
Bitcoin may even benefit from a recession, said Balani. Central banks like the US Federal Reserve finance stimulus packages by increasing the monetary supply. “This will put pressure on currencies and can turn out to be positive for Bitcoin prices in the medium to long term,” he said.
Will a stock market crash affect Bitcoin?
After the stock market dropped off by 7% on Thursday, the price of BItcoin plummeted by 9%, indicating that weakness in equities can affect the sentiment around other risk-on assets such as cryptocurrencies.