Buy the Dip’ Frenzy Sweeps Social Media, Luring Bitcoin Buyers Amid Market Drop
Mentions of “buy the dip” on Reddit, X, 4chan, and Bitcoin Talk have doubled over the past two days as Bitcoin hit its lowest point in months. This surge in mentions comes as Bitcoin dipped below $60,000 for the second time in four months.
Crypto research firm Santiment tracked these mentions across the four platforms, noting the ongoing debate among crypto traders about the current stage of the bull market. Santiment’s post on X highlighted, “The crowd is showing signs of seeing this as a buy the dip opportunity. Ideally, we wait for their enthusiasm to settle down. The time to buy is when they are impatient and skeptical.”
Bitcoin is currently trading at $58,900, down 4.2% over the last 24 hours, its lowest level since May 3, according to CoinGecko data.
Mt. Gox is still a major factor
Tom Lee, founder of financial research firm Fundstrat, told CNBC on July 1 that the recent negative sentiment is largely due to Mt. Gox preparing to offload $9 billion worth of Bitcoin to its creditors later this month. Concerns are mounting that Bitcoin could slump further if a significant portion of Mt. Gox’s 127,000 creditors decide to sell their recovered Bitcoin. Despite this, Lee stands by his prediction that Bitcoin can reach $150,000 before the end of 2024.
“[Mt. Gox] was a huge overhang for many years [but knowing] that is going to disappear in July, I think it’s a reason to expect a pretty sharp rebound in the second half,” Lee said.
Another factor contributing to the negative sentiment is the spot Bitcoin exchange-traded funds, which have only seen inflows on six of the last 18 trading days, according to Farside Investors data.
Not everyone is confident that the bottom is in
Kudret Ayyıldır, Research Manager at GCM Investment, suggested that the recent dip below $67,500 might signal further corrections, estimating a potential bottom area between $48,000 and $50,000 in a July 3 post on X to his 19,300 followers.
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 fluctuating between 30 and 53 ever since.
