Why is this "beneficial for everyone" (except private individuals)?

For regulators: A crash to $20,000 will allow them to claim that "crypto is a bubble" and implement strict controls.

For large banks: They will be able to enter the asset at levels they missed in 2023-2024.

Summary: The scenario to $20,000 is a "reset" scenario for the entire industry. If you believe in the conspiracy theory of "big capital," then this bottom looks like a logical conclusion to the manipulation cycle.