Few Calls to 'Buy the Dip' Now, But Ultra-Wealthy Family Offices Are Enthusiastic about Crypto

Short-term social media data suggests traders aren’t calling for Bitcoin (BTC) dips right now… but the outlook is much brighter in the longer term, with another study showing 77% of family offices in the US are considering Or invest in cryptocurrencies.

The BTFD data was compiled from KJ Lanaul's posts mentioning "Buy The Dip" on social media platforms including Twitter, Reddit, Discord and Telegram, and was published on the Insights Santiment blog earlier this week superior. It also tells a positive story in a roundabout way.

Over the past year, many traders have called for bargain-hunting, and prices tend to fall further after dips and fail to recover for months on end, research shows.

"Typically, people consistently predict bottoms before they actually hit, and the real bottoms form when they're least expected, and buying the dip is now under-reported in Buy The Dip Or no mentions. As of now, mentions are very low."

For example, in mid-May last year, as the price of Bitcoin began to plummet due to China’s Bitcoin mining ban and Elon Musk-related panic, some 68,000 online traders mentioned buying the dip when BTC fell to around $44,000 . However, the bottom did not come until late July, when the price of BTC was around $29,000.

"The pattern we've come to recognize is that there are three waves of 'buying' in a downtrend, each lower than the previous, before the market recovers after three waves," Lanaul wrote.

Family offices are keen on cryptocurrencies

While prices fluctuate in the short-term, long-term growth for cryptocurrencies seems inevitable as more high-net-worth individuals and families support the industry. According to the latest edition of BNY Mellon’s Global Family Office Survey, 77% of family offices are either active in the crypto space or are considering investing in the industry in the near future.

A family office is a private firm that manages investments on behalf of high net worth individuals or families. BNY Mellon is an investment banking giant that also provides services in the family office market.

The survey surveyed 200 participants and included 144 multi-family offices and 56 single-family offices each managing assets worth more than $150 million.

Among the large group of people who are enthusiastic or active in cryptocurrencies, 72% express their intention to increase their exposure to cryptocurrencies in the next 12-24 months. Notably, the survey also found that 64 percent of multi-family offices are actively investing in cryptocurrencies, compared to 36 percent of single-family offices.

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