“Buy every dip.” That’s the counsel from Strike CEO Jack Mallers. Mallers asserts that with quantitative tightening behind us and rate cuts and stimulus approaching, a significant influx of capital is forthcoming. According to him, the U.S. cannot sustain declining asset prices, leading to a substantial wave of liquidity poised to stabilize prices.
While retail investors have embraced phrases like “buy the dip” and “dollar-cost averaging” for purchasing at market lows or making regular investments, these concepts are fundamentally derived from professionals like Samar Sen, senior vice president and head of APAC at Talos, an institutional digital asset trading platform.
He explains that institutional traders have utilized these terms for decades to strategically navigate market entry points and gradually increase exposure while mitigating emotional decision-making in volatile environments.
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How institutions buy the dip
Treasury firms like Strategy and BitMine have emerged as examples of institutions actively engaging in dip buying and dollar-cost averaging (DCA) at scale, diligently acquiring coins whenever possible.
Strategy added another 130 Bitcoin (BTC) on Dec. 1, while the ever-hungry Tom Lee purchased $150 million in Ether (ETH) on Dec. 4, prompting Arkham to comment, “Tom Lee is DCAing ETH.”
However, while it may seem that smart money is glued to market fluctuations, the reality is quite different.
Institutions don’t adopt retail language, Samar explains, but the fundamental concepts of disciplined accumulation, opportunistic rebalancing, and staying insulated from short-term fluctuations are central to their interaction with assets like Bitcoin.
The main distinction, he highlights, lies in their execution methods. While retail investors tend to react emotionally to headlines and price charts, institutional teams employ “structured, rules-based and quant systematic frameworks.”
Asset managers and hedge funds utilize a blend of macroeconomic indicators, momentum triggers, and technical specifications to establish a long-range perspective and “identify attractive entry levels.” He states:
“A digital asset treasury (DAT) desk may reference cross-venue liquidity data, volatility bands, candlestick patterns, and intraday dislocation signals to determine if a decline represents a genuine mean-reversion opportunity. These are the institutional equivalents of “buying the dip,” rooted in quantitative statistical realities rather than impulse.”
While retail DCA typically entails purchasing the same dollar amount on a set schedule, institutions take a more refined approach with “execution science.” Periodic market orders are replaced by algorithmic strategies that minimize market impact and avoid revealing intent.
In every instance, their strategies are shaped by considerations of risk, liquidity, expected market impact, and portfolio construction (rather than sharing memes about scooping up dips or trading on momentum).
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What really happens when Bitcoin drops 10–20%?
Despite appearances suggesting they react to market changes instantly, the truth is more calculated. Samar explains that quant-driven funds rely on statistical models capable of distinguishing when a sharp price movement signals a “temporary dislocation” rather than a genuine reversal.
Thus, while retail traders might respond to calls to buy the dip, institutional reactions to market downturns are methodical, signal-driven, and “governed by pre-defined processes.”
For retail investors wishing to mimic institutional best practices in DCA and dip buying, what should they adopt?
Samar asserts that the crucial step is to define your exposure in advance, before the markets experience turbulence. He notes that institutions do not wait for volatility to determine their holdings. They establish their target allocations and cost bases prior to market shifts to avoid emotional reactions to headlines.
The second principle, according to Samar, is to separate the investment decision from execution. “A portfolio manager may conclude it’s time to increase exposure, but the actual trading is conducted systematically – through execution strategies that distribute orders over time, seek liquidity across venues, and aim to minimize market impact.”
Even at the retail level, the concept remains: decide on your desired holdings first, then carefully plan your approach to achieve them.
Lastly, assess your actions post-trade. Institutions examine whether execution adhered to the plan, where slippage occurred, and what could be improved in future transactions. Hence, if you aim to accumulate crypto like a pro:
“Set your rules early, execute calmly, and evaluate honestly — you will already be operating much closer to institutional best practice than most.”
This article does not constitute investment advice or recommendations. Every investment and trading action carries risk, and readers should conduct their own research before making decisions.
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