Mentions of “buy the dip” surged across social platforms like Reddit, X, 4chan, and Bitcoin Talk in the last 48 hours, coinciding with Bitcoin (BTC) dipping below $60,000 for the second time in four months.
According to crypto research firm Santiment, which monitored mentions across these platforms, discussions among crypto traders centered on Bitcoin’s current position within the bull market.
“The community seems inclined to view this as a buying opportunity,” noted Santiment in a statement on X.
As of the latest data from CoinGecko, Bitcoin is trading at $58,900, marking a 4.2% decrease over the past day and hitting its lowest level since May 3.
The anticipation surrounding Mt. Gox, which is preparing to distribute $9 billion in Bitcoin to its creditors later this month, has contributed significantly to recent negative sentiment, according to Tom Lee, co-founder of financial research firm Fundstrat, speaking to CNBC on July 1.
Concerns linger that a substantial sell-off could occur if a significant portion of Mt. Gox’s 127,000 creditors decide to liquidate their recovered Bitcoin. Despite this uncertainty, Lee remains steadfast in his prediction that Bitcoin could reach $150,000 by the end of 2024.
Further exacerbating negative sentiment are reports that spot Bitcoin exchange-traded funds have seen inflows on only six out of the last 18 trading days, as per data from Farside Investors.
Kudret Ayyldr, Research Manager at GCM Investment, expressed caution about Bitcoin’s inability to sustain levels above $67,500 since April, suggesting a potential correction to the $48-50K range in a July 3 post on X to his 19,300 followers.
Meanwhile, the Crypto Fear and Greed Index, a barometer of market sentiment for Bitcoin and cryptocurrencies, currently sits in the “Fear” zone with a score of 44 out of 100. It plunged to an 18-month low of 31 on June 25 and has since fluctuated between 30 and 53.
In related news, there’s ongoing debate about whether certain “Bitcoin Layer 2s” truly fit the definition of Layer 2 solutions, highlighting discussions within the cryptocurrency community about technological classifications.