A falling knife is an asset whose price is dropping rapidly, and the saying "don't try to catch a falling knife" warns against buying it before the fall has clearly stopped. Investors who buy early in such a slide, hoping for a bargain, can see the price keep falling and their losses deepen. The phrase applies to stocks hit by bad news as well as to cryptocurrencies during a crash. It is the cautious counterpart to "buy the dip" (BTFD): a brief dip may recover, but a falling knife may reflect a lasting change in value. A short bounce in the middle of a slide, known as a dead cat bounce, can tempt buyers too soon. Many traders wait for signs of capitulation or a stable base before buying.