Emily Walker
Recent data indicates that social media users are encouraging purchases following the latest drop in Bitcoin and other cryptocurrencies.
Social Media Users See Bitcoin Dip As Buying Opportunity
According to a recent update from the analytics firm Santiment on X, social media sentiment has shifted significantly after a market-wide price decline.
The key metric in focus is “Social Volume,” which measures the level of discussion surrounding specific topics among social media users.
This metric assesses value not through the number of mentions but by counting distinct posts or threads that include at least one relevant term, preventing a few heavily mentioned posts from distorting the data.
To gauge investor sentiment, Santiment filtered Social Volume specifically for cryptocurrencies, focusing on terms like ‘buy’ and ‘sell.’ Below is a chart illustrating the trends related to these terms over the month:
The graph reveals a significant increase in social discussions around buying after the recent price drop of Bitcoin and other cryptocurrencies.
Conversely, discussions regarding selling remained low, indicating that social media users see this price dip as a chance to accumulate assets rather than panic selling.
This marks the fourth instance in the past month where social media reactions to Bitcoin price declines led to calls for increased buying. Historically, an excess of Fear Of Missing Out (FOMO) often results in market peaks; however, recent instances have seen market recoveries post-dip.
This trend may be attributed to the timing of buying calls, which occurred after price decreases rather than during a rally. Given the recent rise in Social Volume for buying terms, it’s plausible that similar positive market effects may follow this time as well.
Nonetheless, this indicator remains important to monitor as any resurgence in Bitcoin’s upward movement could reignite the bearish market trends linked to past FOMO patterns.
Current BTC Price
As of now, Bitcoin is trading at approximately $96,900, reflecting a more than 2% increase over the past week.