As Bitcoin sinks into the red again – capturing the hearts of many investors – President Nayib Bukele of El Salvador happily announced that he did not miss the drop after all. In contrast, the head of state reports that El Salvador bought an additional 410 Bitcoins for $15 million.
However, is this really the best time to buy dips? According to journalist Colin Wu’s survey of Chinese investors, the majority plan to buy Bitcoin instead of Ethereum during the price drop.
According to the “Buy the Dip Survey” survey conducted by the Chinese community on January 22: 61% choose to buy Bitcoin, only 22% choose to buy Ethereum, and 35% think that if Bitcoin falls below $30,000, they will buy the bottom. pic.twitter.com/fxhfpYsrWI
– Wu Blockchain (@WuBlockchain) January 23, 2022
But, what’s more remarkable is out of 3,808 participants, 1,364 people said they would buy into the drop if Bitcoin drops below $30,000. Meanwhile, 1,001 people plan to buy if Bitcoin falls below $25,000. While admittedly the sample size is very small to work with, it shows that many investors are expecting even lower declines.
For his part, Messari founder Ryan Selkis made the announcement when he thought it was the right time to buy Bitcoin. According to the researcher, this would be when the ratio of market value to real value less than 1. Furthermore, Selkis Discuss this would put the Bitcoin price around $28,000 under current circumstances.
You always buy BTC when MVRV drops below 1. Here it would be ~$28k. pic.twitter.com/hqHlMFUajL
– Ryan Selkis (@twobitidiot) January 22, 2022
So, in a sense, Selkis and most of the Chinese investors who took part in Wu’s survey seem to be on the same page.
Go Go go!
The exchange flow balance for Bitcoin could provide a better overview of what went wrong. From January 20 to January 21, 2022, the flow of exchange capital increased, indicating that people were selling their assets. However, this was later followed by outflows.
At press time, the exchange cashflow balance is 3147.60 BTC, indicating a slight inflow again. It’s worth noting, however, that recent inflows do not appear to be near the levels seen around January 11, 2022. This is a sign that investors are being cautious.
Source: Sanbase
I’m calling it
All that said and done, Santiment data has previously shown that investors have been calling to buy at a discount long before the bottom is hit.
Now, the metrics seem to suggest that investors are getting wiser. Despite the extreme level of fear in the market, not many people are acting out of greed. It could be argued that Chinese investors are waiting for lower prices before entering.
Meanwhile, WazirX CEO of Binance, Nischal Shetty also stated that Indian investors are opting for a “wait and see” approach in this round.
At press time, the king coin is trading at $35,487.57.