Bitcoin (BTC), the world’s largest cryptocurrency by market cap, experienced notable volatility on October 1, with its price dropping to $60,000. This downward shift raised doubts among many investors about BTC’s role as a safe-haven asset, particularly amid the current global economic landscape and geopolitical tensions. By Wednesday, October 2, Bitcoin managed to regain some of its lost value, trading above $61,000.

The decline occurred during a period when Bitcoin's status as a refuge asset is being closely scrutinized. Traditionally seen as a hedge against economic and political instability, Bitcoin's resilience has been called into question in light of the ongoing Middle East conflict. Escalating tensions between Israel and Iran have generated significant uncertainty in global markets, yet Bitcoin failed to demonstrate the expected stability typically associated with a store-of-value asset during crises.

At the same time, analyst Alex Adler highlighted a shift in Bitcoin holder dynamics. His data reveals that short-term holders reduced their positions by approximately $83 billion (1.31 million BTC), signaling increased confidence among long-term investors, who are choosing to hold onto their assets despite recent market fluctuations. This shift suggests that while short-term traders are cashing out, more seasoned or institutional investors are betting on Bitcoin’s long-term value.