Social media references to Bitcoin and crypto dip buying have skyrocketed to their highest level since last July amid a crypto market collapse that recently sent Bitcoin under $80,000.
According to Santiment’s social sentiment tracker, traders on several social media platforms, including X, Reddit, and Telegram, between February 25 and 26 are “showing a very high level of confidence” that this dip is “the one to buy,” the platform said in a February 28 post to X.
It added This marks the highest degree of crypto dip-buying interest in seven months.
On February 25, a day after US President Donald Trump declared his intended 25% tariffs on Canada and Mexico were going forward, Bitcoin fell below $90,000.
After Trump threatened a further 10% tariff on China, the price dropped below $80,000 on February 28 amid other macroeconomic uncertainty, shedding even more of the gains made post-US election.
The analytics platform notes, though, that the great interest in purchasing the dip is not always a sign to enter the market since it can often move in the opposite direction of expectations.
“Ideally we are waiting for this crowd enthusiasm to die down as a signal that enough pain has hit retail traders to justify a bounce,” Santiment said.
“Look for declining optimism and shrinking levels of buy-the-dip calls markets tend to move in the opposite direction of the expectations of the crowd.
Based on its methodology, Santiment’s tracker sorts through crypto-specific social media channels, including X and Telegram, for the top 10 words that have seen a notable increase in social media mentions over the last two weeks.
Trading at roughly $80,400, Bitcoin has dropped 5% in the last 24 hours and retreated over 21% in the past 30 days, CoinMarketCap data shows.
Trading at almost $2,139, Ether is down over 30% in the past 30 days and dropped 7.54% in the last day.
In a follow-up post, Santiment noted it is not surprising prices are declining even further following the “retail crowd was all over the prospects of a dip buy.”
Look for the crowd growing bored or depressed to indicate that the true dip buy opportunity has arrived on the scene.
Google Trends data reveals a similar story playing out as search interest in “buy the dip” surged to 100 on February 26 when looking over one week. Search activity has subsequently dropped to a score of 49 out of 100, though.
Searching for the term “crypto” reached its highest level in the past seven days on February 25 and is presently sitting at 87 out of 100.
The Google Trends Frequently Asked Questions (FAQ) defines a value of 100 as the term’s peak popularity, while a score of 0 indicates that the term’s volume on that particular day was relatively low.
