Mentions of “buy the dip” on social platforms Reddit, X, 4chan, and Bitcoin Talk briefly surged in the past two days as Bitcoin (BTC) dropped below $60,000 for the second time in four months.
According to crypto research firm Santiment, which tracked the total mentions across these platforms, crypto traders are debating the current phase of Bitcoin’s bull market.
Source: Santiment
“The crowd is showing signs of seeing this as a buy the dip opportunity,” Santiment noted in a post on X, adding:
Bitcoin is currently trading at $58,900, down 4.2% over the last 24 hours, its lowest level since May 3, CoinGecko data shows.
Mt. Gox is still a significant factor
Tom Lee, a founder of the financial research firm Fundstrat, told CNBC on July 1 that much of the recent negative sentiment is largely due to Mt. Gox preparing to offload $9 billion worth of Bitcoin to its creditors later this month.
Some are concerned that Bitcoin could decline further if a substantial portion of Mt. Gox’s 127,000 creditors decide to sell their recovered Bitcoin. Lee is uncertain about when the bottom will be reached, but he stands by his prediction that Bitcoin can hit $150,000 before the end of 2024.
Another source of negative sentiment may have come from the spot Bitcoin exchange-traded funds, which have only seen inflows in six of the last 18 trading days, Farside Investors data shows.
Not everyone is confident the bottom is in
Kudret Ayyıldır, Research Manager at GCM Investment, suggested that alarm bells might be ringing now that Bitcoin has failed to hold above $67,500 since April.
“This negativity may prompt a correction to the $48-50K bottom area,” Ayyıldır estimated in a July 3 X post to his 19,300 followers.
Related: Ethereum will outperform Bitcoin after ETF launch — K33 Research
The Crypto Fear and Greed Index, which measures market sentiment for Bitcoin and the broader cryptocurrency industry, is currently in the “Fear” zone with a score of 44 out of 100. It fell to an 18-month low of 31 on June 25 and has been hovering between 30 and 53 ever since.
Crypto Fear & Greed Index score. Source: Alternative.me
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