Roughly two years ago, Cyprus' banking system started imploding, leading to the first big price rally in bitcoin powered in large part by a surge in perceptions that it was an alternative to the flawed banking system in crisis.
Well, something similar could be happening in Russia right now - with the rubble collapsing and inflation heading up (wiping out savers purchasing power).
But bitcoin isn't benefiting from crisis this time. It's been sinking along with the ruble.
In fact, bitcoin doesnt seem to be benefiting at all from many signs the entire global financial system might be heading for another implosion.
Is bitcoin no longer viewed as a safe haven? I think its instability over the past year has really damaged its prospects of being viewed as a safe haven. Looks like it's being treated as anything but a safe haven. It's been behaving like just another pump and dump altcoin.
Altcoin market these days is terrible - but dont underestimate the opportunity available to any serious altcoin to displace bitcoin. Bitcoin is not the heavyweight it used to be anymore.
Even with Greece's financial system on the verge of potential collapse and Russia's in a tailspin, bitcoin's being treated like just another pump-and-dump altcoin now. All the big action is in shorting it.
Quite a difference from how it was treated during the Cyprus incident about a year ago.
A lot of people in a lot of places are looking for escape hatches, but not many apparently see bitcoin as a reliable one anymore.
