Dip
In cryptocurrency, ‘the dip’ refers to a drop in the price of an underlying asset. It is a common reference in the crypto market. For example, when Bitcoin drops in price, commenters on social media usually encourage others to ‘buy the dip’ (BTD). In other words, it is the best time to buy, as Bitcoin decreased in price.
However, this is not a strategy that has always proved successful in traditional financial (TradFi) markets.
While BTD is one of the most shared memes in the crypto space, it should be done with a complete understanding of the risks involved. Cryptocurrencies are volatile assets that can continue dipping in price, and they may never recover in terms of price and market capitalisation.
Key Takeaway
A ‘dip’ refers to a decline in the price of an asset.