Latest Bitcoin (BTC) price drops have caused a lot of panic. As emotions were flowing to the market, many questions and discussions have arisen about how Bitcoin has been seen in community so far.
Something different for everyone...
Even though Bitcoin is an asset that is vulnerable to strong exchange rate fluctuates, many people have called it a "safe haven" for so long. However, for some of them, Bitcoin's safeness was controversial due to cryptocurrency recent decline, which was coincided with traditional market crash. Looking for correlations between these two is a big misjudge - initial Bitcoin's decline might have had a completly different cause. Fear, panic and wrong teories repeated many times had an impact on it. Emotions took over all the markets.
At the very beginning a "safe haven" thesis should be explained - what it is, and what that means for Bitcoin enthusiasts. Such statement can be perceived in many different ways. So far, Bitcoin has attracted many investors due to fear of traditional monetary system collapse. Satoshi Nakamoto himself created Bitcoin as an alternative asset for fiat money that is inflationary. In some countries, where economic uncertainty has risen, people have been looking for alternatives, which are not controlled by government. It was Bitcoin's time. That was the time, when Bitcoin has been considered as a "safe haven", because none of state authorities could put a hand on it.
On the other hand, cryptocurrency market is full of people, that think Bitcoin is only a speculative asset. Do not forget about those, who only count on high profits. Such people misunderstand the "safe haven" statement.
Analysts and economists opionion on Bitcoin
What are the specialists of market thinking right now? For most of analytics from cryptocurrency industry, a "safe haven" is something that investors can quit, once a crash happens. Not always during the so-called "storm". When a decline on market appears, users automatically close their short positions.
Some of them think, that gradual acceptance of institutional investors for cryptocurrencies has made them vulnerable to the same forces as traditional markets. For others, sudden cryptocurrency sale was pure example of panic and fear. The fact is, that no one knows how much institutional investors had to do with that.