Recent data reveal that the latest dip in Bitcoin and other cryptocurrencies has sparked reactions on social media urging people to buy.
Bitcoin’s Price Decline Viewed Positively by Social Media Users
In a fresh update on platform X, the on-chain analytics company Santiment has shed light on the mood across key social media outlets following a broad decline in market prices.
The term “Social Volume” is pivotal here, indicating the extent of chatter a specific topic or term garners across social media platforms.
This measure is assessed by the number of posts, messages, or threads that mention the topic at least once, rather than just counting the mentions themselves. This method ensures that a small number of posts with excessive mentions don’t disproportionately influence the results.
To gauge investor sentiment, Santiment has filtered the Social Volume for cryptocurrencies using terms associated with ‘buying’ and ‘selling.’ Below is a chart from the company illustrating the pattern of this metric over the recent month:
According to the graph, discussions centered on buying-related terms have surged after the recent drop in Bitcoin’s price and that of other cryptocurrencies.
Meanwhile, conversation around selling remains considerably lower, suggesting that many social media users view the bearish market movements as yet another chance to stock up on their holdings.
In the past month alone, this marks the fourth instance where social media enthusiasts have responded to Bitcoin’s price fall by advocating for more purchases. Historically, heightened Fear Of Missing Out (FOMO) tends to coincide with price peaks in cryptocurrency markets. Yet, contrary to this trend, these recent buying sprees have been followed by market upticks.
This pattern might be due to these buy calls emerging after a price dip, rather than during an upward trend. With another increase in Social Volume for buy-related terms, the previously noted market rebound might occur again.
However, it remains wise to monitor this indicator in the near term. Renewed market fervor, in the event of Bitcoin’s price uptrend, could activate the typically bearish impact that FOMO has had in former situations.
BTC Price Update
As of now, Bitcoin’s trading price hovers around $96,900, marking an increase of over 2% within the past week.
It seems Bitcoin’s price has been on a slight decline over the last few days.
Featured images are courtesy of Dall-E, Santiment.net, and charts from TradingView.com.
