When panic sets in the market, the capital flow in the cryptocurrency market changes. Investors tend to move their funds from more volatile cryptocurrencies to more stable ones. Stablecoins are usually the first choice as they aim to maintain a fixed value. Among cryptocurrencies, Bitcoin is often considered more resistant to risks due to its large market cap and long - established reputation. Some privacy - focused cryptocurrencies may also attract investors during times of market stress as they offer a certain level of anonymity and independence from traditional financial systems.