Nothing seems to be going well for the stock and crypto markets as Bitcoin and Ethereum tanked 7% on Wednesday. Both leading cryptos are in a downward spiral despite Ethereum founder Vitalik Buterin launching his book Proof of Stake today.
Bitcoin is trading at $18,700 levels while Ethereum is hovering around $1,200 levels.
Also read: This is how many times Bitcoin has been declared ‘dead’ since its creation
However, on-chain data and analytics company saint revealed that calls to “buy the dip” still dominate the social media narrative. Data shows that ‘buy the dip’ calls saw a surge this week as BTC plunged below $19,000 again.
The buzz to ‘buy the dip’ is no longer holding up as markets plunge to new lows each week. This shows that investors are losing confidence in the markets and fear that further corrections are imminent.
Should You ‘Buy The Dip’ On Bitcoin And Ethereum?
Investors and analysts alike have yet to determine when the markets may bottom out, and every story is contradictory. The crypto markets have never experienced a recession-like scenario and this is the first time the markets are staring at financial turmoil.
Inflation is now at 8.3%, while the prices of houses, gas and everyday goods have skyrocketed. Rate hikes are now a common occurrence and all factors are creating a bottleneck for investors.
Also read: Bitcoin could explode at this price
Therefore, buying the dips on Bitcoin and Ethereum is still seen as a risky venture, despite the price being lucrative. The majority of investors are already under water as markets wipe out all the gains they generated last year. A break-even point has yet to occur and investors have to wait for the long term to recover their losses.
It is recommended to remain cautious during this period and not go all-in on Bitcoin and Ethereum. Beware of market sentiment before taking an entry position during the global market turmoil.
Also read: This is when Ethereum could bottom out
At the time of writing, Bitcoin was trading at $18,778 and was down 7.1% in 24-hour trading. On the downside, Ethereum was trading at $1,285 and is down 7.2% in the day’s trading.