From my observation, if the market in general crashes, bitcoin follows and since bitcoin and crypto are much more volatile than the other markets you see much bigger moves. So when you see a big move on the normal markets, then crypto goes crazy, both directions.
Possible, but I think the worst we can go is to hit the previous all time high of $19k and this could be the final capitulation. So it will be really crazy to see the price goes to that level, and we might hear a lot of negative things about crypto. But we've seen it before, crazy dip, then huge recovery in the bull market. Lots of scenario playing right now, but no one can see the future we will just have to prepare for the worse.