The insatiability of crypto investors is one to reckon with. Recently, Bitcoin hit a historic price past $100K following Donald Trump’s win in the POTUS race. Shortly after, the Fed and Jerome Powell ushered in a crypto bloodbath.
To that end, chatter about ‘buying the dip’ has sprung back into the industry. What are investors in for as the year closes? According to Santiment, the ratio of mentions on social media of ‘buying the dip’ ramped up as Bitcoin dropped below the six-figure price level.
The social dominance score, reflecting the mentions of ‘buying the dip’ on social media, reached 0.061 on December 19. This coincides with Bitcoin’s stagnation below the $100,000 mark for approximately 12 hours at the time of this report.
It was the highest social dominance score since April 12, when Bitcoin’s price fell below $70,000 to just around $67,000, then fell to around $63,000 the next day.
The ‘buy the dip’ sentiment was almost retested on August 4, when BTC dropped below $60,000 and slid toward $53,000 within the next 24 hours.
According to CoinGecko’s on-chain data, Bitcoin (BTC) is currently valued at $97,503.91, up 0.6% from an hour ago and down 3.6% in the last 24 hours. The value of Bitcoin today is 2.4% lower than it was seven days ago.
The current ‘buy the dip’ chatter showcases investors’ belief that BTC will tank further down as the historic negative weekend sentiments kick in.
Bitcoin, altcoins, memecoins market bloodbath
Crypto is in an interesting state. Data shows that search interest for the term ‘crypto’ continues to be significant, although it has dropped. Recent data from Google Trends shows that global searches for ‘crypto’ have reached a score of 75 in the past week, marking a decline of 25 points from a peak score of 100 recorded at the start of December.
Most of those interested in crypto are from St. Helena. Saint Helena is a British Overseas Territory off the coast of Africa in the South Atlantic Ocean. It consists of Saint Helena, Ascension Island, and the island group of Tristan da Cunha.
It’s interesting right? That crypto has made a home in one of the smallest parts of the world. Nigeria follows in second place, while the Netherlands takes the third place.
The interest far outweighs what has been happening in the crypto market. Today’s cryptocurrency market is experiencing a downturn, with Bitcoin (BTC) slipping beneath the $96,000 mark. BTC and ETH ETFs are experiencing outflows following an extended period of positive performance.
Leading altcoins such as Ethereum (ETH) and Solana (SOL) experienced a downturn, with declines ranging from 3% to 5%. In a surprising twist amid the market’s downturn, Movement (MOVE) and Zerebro (ZEREBRO) have established themselves as standout performers, with MOVE surging 30% and Zerebro (ZEREBRO) skyrocketing by 56% over the past 24 hours.
The global crypto market experienced a decline of around 2%, settling at $3.34 trillion, even as trading volume saw a rise of 3.42%, reaching $280 billion. The fear and greed index holds steady at 62, indicating that the market sentiment leans towards greed.
Is FOMO nearing its end?
The crypto dip followed after the Federal Reserve cut interest rates. That may sound like a good thing on the surface, but as part of the cuts, the Fed also said it expects inflation and unemployment to rise more than expected in 2025.
The recent surge in crypto began following the election, fueled by growing speculation that President-elect Donald Trump would initiate a bull run in the crypto market. While that possibility exists, the observed gains did not correspond with any significant shifts in the industry.
The fear of missing out, commonly referred to as FOMO, has propelled valuations upward, and it appears that this trend may be reaching its end.
There was also speculation that Bitcoin, in particular, would be acquired by the US government as a reserve currency or used as such by other governments. Fed Chair Jerome Powell was clear that the Federal Reserve is not allowed to buy Bitcoin, which may have caused some disappointment.
This appears to be a ‘buy the rumor, sell the news’ moment in investing, in which investors are disappointed when results or news come out, even if it is as obvious as the Fed not purchasing Bitcoin.
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Source: https://www.cryptopolitan.com/bitcoin-talk-about-buying-dip-hits-8m-high/