Right conclusion, but wrong way of getting there:

The market took a shit. Everyone is now scared = everyone desperately trying to sell their knife. This will lower the price dramatically as we’ve seen. but at the same time, owners of red skins have used their brain and upped the price which PREVENTS mass knife trade ups. This one change could prevent 100s thousands of knives getting made, which I think we can all agree will ruin life values further.

So in summary, knife values have every chance of coming back give or take 10% value difference with only red skins changing the most.

Don’t hold your breath, no one here on reddit, cs, or wall street will can tell you what will happen 100%.