Is it suitable to buy the dip for Bitcoin and Ethereum now?

I believe it is not, let me share my views and welcome discussion.

$BTC has fallen more than 15% from its recent high, currently hovering around $80,000; Ethereum is performing even weaker with an 8% single-day drop, currently struggling in the $2,500 range.

In the face of such a sharp decline, many retail investors' first reaction is: Is this a buying opportunity?

Buying at lows and waiting for a rebound seems like a classic strategy. But please pause and carefully examine the current market. Buying the dip now could be far more dangerous than you think.

The key issue at the moment is that the entire market's risk aversion sentiment is sharply increasing, and even traditional safe-haven assets have not been spared. Gold has fallen from its peak, with a single-day maximum drop close to 10%; silver has suffered the most severe decline, exceeding 30%.

When a universally recognized ultimate safe-haven asset like gold experiences such a significant pullback, the core narrative of “Bitcoin as digital gold” will inevitably be severely impacted. Institutions and large funds will not suddenly turn to the crypto market just because gold and silver are falling, as their position adjustments follow strict processes and cycles. The more realistic situation is that many retail investors who chased gold and silver at high prices have already been deeply trapped, and their accounts have significantly shrunk. When they urgently need to supplement margin gaps, the most easily liquidated assets are often the relatively weaker $BTC and $ETH.

The leverage in the crypto market is higher, and the liquidation mechanism is more sensitive. Safe-haven assets are facing indiscriminate selling, greatly amplifying the probability of declines. This current round of declines may not have reached the bottom yet.

More importantly, such extreme market conditions can cause profound psychological trauma. Those who just lost 30% on silver will not immediately turn around and embrace another asset class with greater volatility. They are more likely to choose to sell all their Bitcoin, or even temporarily or permanently leave the market. This exit will lead to a significant gap in buying power in the coming months, further intensifying downward pressure.

A 15% drop in gold is a clear warning, while a 30% drop in silver is a signal of amplified market panic. In such an environment, it is difficult for the most aggressive risk assets (Bitcoin and Ethereum) to stabilize first.

If you still want to buy the dip, you might as well ask yourself: When the most stable safe-haven assets are collapsing, what makes you think cryptocurrencies have already bottomed out?