Author: Stephen Katte, CoinTelegraph; Compiled by Tao Zhu, Jinse Finance
Against the backdrop of the cryptocurrency market crash that has recently pushed the price of Bitcoin below $80,000, mentions of buying cryptocurrencies on social media have surged to their highest level since July last year.
Santiment's social sentiment tracker found that during the period of February 25-26, traders' discussions on various social media channels such as X, Reddit and Telegram "showed very high confidence" that this dip is a "buying opportunity", the platform said in a post to X on February 28.
It added that this is the highest level of interest in buying the dip in cryptocurrencies in seven months.
On February 25, US President Donald Trump announced plans to impose a 25% tariff on Canada and Mexico, causing Bitcoin to drop below $90,000.
Subsequently, as Trump threatened further 10% tariffs on China and other macroeconomic uncertainties, the price of Bitcoin further gave up its post-US election gains, falling below $80,000 on February 28.
Santiment's tracker filtered cryptocurrency-dedicated social media channels to find the 10 words that have seen the most significant growth in the past 14 days. Source: Santiment
However, the analysis platform said that high interest in buying the dip may not be a signal to enter the market, as the market often moves in the opposite direction of expectations.
"Ideally, we are waiting for this group enthusiasm to subside, which is a signal that retail traders have suffered enough pain to justify a rebound," Santiment said.
"The market tends to move in the opposite direction of the crowd's expectations, so a decline in optimism and a decline in the level of buying the dip can serve as a bullish signal."
According to Santiment's methodology, its tracker filters through cryptocurrency-dedicated social media channels such as X and Telegram to find the top 10 words that have seen the most significant increase in mentions compared to the previous two weeks.
According to CoinMarketCap data, Bitcoin has fallen over 21% in the past 30 days and 5% in the past 24 hours, trading around $80,400. Ethereum has fallen over 30% in the past 30 days and 7.54% in the past day, trading around $2,139.
Santiment said in a subsequent post that it is not surprising that prices have fallen further after "retail investors are confident in the prospect of buying the dip".
The platform said: "If people become disinterested or depressed, that indicates the true buying opportunity has arrived."
Google Trends data shows that within a one-week timeframe, search interest in "buy the dip" spiked to 100 on February 26. However, search interest has since declined to 49 out of 100.
Google Trends data shows many people are interested in the term "buy the dip". Source: Google Trends
Meanwhile, on February 25, search volume for the term "crypto" reached its highest level of 100 in the past seven days, and is currently at 87 out of 100.
According to the Google Trends FAQ, a score of 100 indicates the highest search volume for that term, while 0 indicates relatively low search volume for that day.
