I don’t believe this is true. I witnessed the opposite. Bitcoin at $2 was a shit show of hot potato where nobody wanted to get caught with BTC overnight for fear of a crash. The massive liquidity in the market and large scale adoption has strengthened Bitcoin’s case immensely. The more Bitcoin’s price falls, the more likely it is to crash. We are headed towards too big to fail territory. A step back would be catastrophic, not a blessing.
What you describe is the general sentiment in low price periods. In hindsight, those that stacked up BTC at these prices were always right.
The "step back would be catastrophic" is imo more adoption-related than price-related. A price crash on its own for me would not be catastrophic, even if it is the result of a chain reaction where institutional investors are involved too (and some of them get bankrupt). However a true adoption decline could be problematic, while not forever, but it could be a setback causing a bear market of several years we've still not witnessed.
This is however part of the general risk when you deal with Bitcoin. As long as the fundamentals don't change (as it was always the case until now), a low price is always a better option to buy in. But
if the fundamentals change, then a low price may be a hint of that.
The 80k "crash" was not really accompanied with any fundamentals change for Bitcoin, so it was simply a buying opportunity. There are some insecurities regarding the general economic and politic situation which do influence the price, but they have normally only a limited effect on adoption - an example is the interest rate: a high interest rate can lead to a bit less Bitcoin investment, but it will probably be followed eventually by another money policy relaxing, and other investment reasons (e.g. censorship resistance, limited supply) aren't affected at all.
Poll
