There have been few cries to ‘Buy The Dip,’ but uber-rich Family Offices are interested in crypto.
“Frequently, the audience universally calls the dip/bottom sooner than the actual dip, and the true bottoms form when the crowd least expects it, as seen by low to no mentions in Buy The Dip,” K J Lanaul stated.
Short-term social media data reveals that traders aren’t rushing to purchase the Bitcoin (BTC) plunge right now… but the long-term picture is considerably brighter, with additional research revealing that 77 percent of family offices in the
The United States are either considering or have invested in cryptocurrency.
For example, in mid-May of last year, as the price of BTC began to fall in reaction to China’s Bitcoin mining ban and Elon Musk-related FUD, over 68,000 traders online discussed buying the dip as BTC fell to around $44,000. However, the bottom did not appear until late July, when BTC was valued at around $29,000.
“The pattern that we have observed throughout the decline is a three wave of Buy the Dip comments, each lower than the previous one, and after three waves, the bottom happens before the market recovers,” Lanaul stated.
While prices vary in the near term, long-term growth in cryptocurrency appears to be unavoidable as more high-net-worth people and families support the industry. According to the most recent edition of BNY Mellon’s Global Family Office study, 77 percent of family offices are either active in cryptocurrency or plan to invest in it in the near future.
Private businesses that handle investments on behalf of high-net-worth individuals or families are known as family offices. BNY Mellon is an investment banking behemoth that also offers family office services. The study had 200 participants, including 144 multi-family offices and 56 single-family offices, all of which handle more than $150 million in assets.
Seventy-two percent of the large cohort who were interested in or active in crypto stated plans to enhance their crypto exposure over the next 12-24 months. Notably, the study indicated that 64% of multi-family businesses were actively investing in cryptocurrency, compared to 36% of single-family workplaces.
In terms of cryptocurrency exposure strategies, 58 percent of respondents chose exchange-traded funds (ETFs), while 42 percent favoured direct ownership and custody.
