Like any other product or service, when you exchange your money for BTC all that has happened is someone decided to sell you BTC and you gave them money. BTCs

Like any other product or service, when you exchange your money for BTC all that has happened is someone decided to sell you BTC and you gave them money. BTCs exchange rate is dependent on someone else offering money. If there's a market panic, the price quickly drops due to a race to beat other orders.