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Nobody is buying the dip… yet ultra-rich Family Offices are

“Often, the crowd universally calls the dip/bottom before the actual dip, and the true bottoms occur when the crowd least expects,” K J Lanaul stated.

Short-term social media data suggests that traders aren’t recommending buying the Bitcoin (BTC) dip right now… but the long-term picture is much brighter, with separate research revealing that 77 percent of family offices in the United States are either considering investing in crypto or have already done so.

K J Lanaul collated the BTFD data from posts on social media platforms such as Twitter, Reddit, Discord, and Telegram mentioning “buy the dip” and released it on the Insights Santiment blog earlier this week. In a roundabout manner, it also offers a positive storey.

Many traders have advocated purchasing the dip too early on a downward trend in the previous year, according to the data, with the price typically falling substantially farther subsequently and unable to recover for months at a time.

“Frequently, the audience universally calls the dip/bottom before the actual dip, and the true bottoms occur when the crowd least expects it, as evidenced by the low to nil mentions in Buy The Dip.” The number of mentions is now quite low.”

For example, when the price of Bitcoin began to fall in mid-May last year in response to China’s Bitcoin mining ban and Elon Musk-related FUD, around 68,000 traders online discussed purchasing the dip as BTC fell to around $44,000. The bottom, on the other hand, did not appear until late July, when BTC was trading at around $29,000.

“The pattern that we have identified is a three-wave Buy the Dip mentions during a downtrend, each lower than the preceding one, and after three waves, the market bottoms out before recovering,” Lanaul stated.

Cryptography for the whole family

While short-term price fluctuations are expected, long-term growth in crypto appears to be unavoidable as more high-net-worth individuals and families invest in the sector. According to the newest edition of BNY Mellon’s Global Family Office study, 77 percent of family offices are either actively involved in crypto or are considering doing so in the near future.

Private firms that manage investments on behalf of high-net-worth individuals or families are known as family offices. BNY Mellon is a multibillion-dollar investment bank that also offers services to family offices.

The survey gathered 200 responses from 144 multi-family offices and 56 single-family offices, all of which handle more than $150 million in assets.

Out of the broad group of people interested in or active in crypto, 72 percent said they planned to increase their crypto exposure in the coming 12 to 24 months. In addition, 64 percent of multi-family businesses were actively investing in crypto, compared to 36 percent of single-family offices, according to the survey.

When it comes to crypto exposure, 58 percent of respondents said they favour exchange-traded funds (ETFs), while 42 percent said they prefer direct ownership and custody.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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