Recent statistics show that the percentage of social media postings mentioning purchasing cryptocurrency hit an all-time high as Bitcoin’s price fell below the critical $100,000 barrier. In light of Bitcoin’s recent drop to $95.5K, “the ratio of Crypto market sentiment discussions that are about buying crypto’s dip has reached its highest level in over 8 months,” as stated in a post by crypto monitoring firm Santiment on Dec. 19, 2014.
Social dominance at its highest in 8 months
As of this writing (December 19), Bitcoin has been trading below $100,000 for about 12 hours, and the social dominance score, which is the sum of all mentions of “buying the dip” on social media, reached 0.061. The Price of Bitcoin Drops Below This was the highest social dominance score since Bitcoin’s price dropped from over $70,000 to a little over $67,000 on April 12 and subsequently dropped to about $63,000 the following day.
Bitcoin almost retested this level on August 4 as it dropped below $60,000 and plummeted around $53,000 during the day. Bitcoin Falls Below: The news broke for $97,258 per bitcoin, which was the result of massive sales every time the price dropped below $100,000 in the previous seven days.
High crypto search interest
While the data shows that search interest for the keyword “Crypto market sentiment” has been high, it has been declining since the beginning of December. Global searches for “crypto” have decreased by 25 points, from 100 at the beginning of December to 75 during the last week, according to Google Trends data from the last 12 months.
Concurrently, “buy the dip” has seen an increase in global searches to 38 in the past week, the highest level seen since August 10th. In a post on December 19th on X, market players were warned by Charles Edwards, creator and analyst of the Capriole Fund, that it won’t take much to move the markets in any direction.
Market Behavior and Forecasts
The decline in Bitcoin Falls Below, buying-the-dip sentiment might influence retail and institutional investors in the coming months. Retail investors are quite sensitive to market sentiment and social media trends; the current upsurge in hopeful speculation about purchasing opportunities may encourage them to increase their investment activity. With the right number of investors buying into these conversations, the market might stabilise and prices could recover.
An investment strategy known as “buy the dip” is available to institutions. To acquire digital assets at a lower price, long-term institutional investors wait for market declines. Institutional investors may be changing their strategy to take advantage of market volatility to build portfolios, which could explain why large financial institutions and enterprises are adopting crypto.
Summary
Investors are keeping an eye on price movements and getting ready for a comeback, according to Sentiments’ new study. The study points to the growing discussion about “buying the dip” in the cryptocurrency market. In volatile markets, investors should use caution when employing this strategy. Like any investment approach, buying on a slump needs thorough research and cautious risk management. Many crypto market sentiment investors have bought the dip, which might signal the beginning of a new development phase for the industry.
