Social media mentions of ‘buy the dip’ hit an 8-month high as Bitcoin dropped below $100K.
The social dominance score reached its highest level since April 12, 2024.
Social media discussions about “buying the dip” have surged to an eight-month high as Bitcoin’s price recently fell below $100,000. This decline sparked a wave of chatter among investors, with the social dominance score hitting its highest level since April. Despite the drop, search interest in crypto remains strong, signaling continued market activity.
With Bitcoin falling as low as $95.5K today, the ratio of crypto discussions that are about buying crypto's dip has reached its highest level in over 8 months. The last time we saw the crowd nearly this enthusiastic about dip buying was the major crash on August 4th. Since… pic.twitter.com/39NlpnGMCs
— Santiment (@santimentfeed) December 20, 2024
Bitcoin’s price has been fluctuating around the $100,000 mark for the past week. Every time it dipped below this psychological level, significant liquidations occurred. On December 19, Bitcoin’s price fell to $95,500, sparking discussions about buying the dip. At publication, Bitcoin was trading at $92,000, reflecting the market’s volatility. Investors are closely monitoring price movements, hoping for a potential recovery.
The social dominance score, which tracks the proportion of social media mentions about buying the dip, reached 0.061 on December 19. This was the highest score since April 12, when Bitcoin’s price dropped below $70,000. This surge in “buy the dip” mentions suggests that many believe this dip could be an opportunity to invest.
Crypto Market Volatility Rises
Search interest for crypto remains high, although it has decreased slightly since the beginning of December. Global searches for “crypto” scored 75 over the past seven days, down from a peak of 100 at the start of the month. Meanwhile, “buy the dip” searches reached a score of 38, the highest level since August 10.
Market analysts, including Santiment, suggest that the current conditions could lead to increased volatility. They believe a potential short squeeze could trigger a sharp price recovery. However, some analysts remain cautious, as the market could dip further before seeing a rebound.
The Federal Reserve’s recent rate cut and its cautious outlook for 2025 have added to market uncertainty. This has fueled concerns about inflation and its impact on the economy, which could influence the crypto market.
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