Recent reports from Santiment reveal that cryptocurrency’s “buy the dip” sentiment has surged to a 7-month high amid the ongoing decline in Bitcoin (BTC) prices.
Bitcoin Dip Effect: Market Volume of BTC Surges
🤷 Traders are showing a very high level of confidence that this dip is ‘the one to buy’, according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough… pic.twitter.com/nM99sLw4v3
— Santiment (@santimentfeed) February 28, 2025
The on-chain analysis platform, Santiment highlighted in its latest report that traders are showing “extremely high confidence” on social platforms like X, Reddit, and Telegram, with many viewing the current dip as “a good time to buy.”
However, Santiment has issued a cautionary note, warning that the market’s high enthusiasm for bottom-fishing—stock market’s equivalent of crypto’s ‘buy the dip’—may not be an ideal signal to enter the market. The firm explained that the market often moves contrary to public expectations. “Ideally, we should wait for this group enthusiasm to subside, as this would indicate that retail traders have endured enough pain to justify a potential rebound,” Santiment explained.
The on-chain analysis firm further cautioned that markets often shift in the opposite direction of the crowd’s expectations. Santiment suggests that traders should watch for declining optimism and a reduction in ‘buy the dip’ calls as a bullish signal.
Notably, Google Trends data reflects a similar trend, with search interest for ‘buy the dip’ peaking at 100 points on February 26, before dropping to 37 points. However, the trend for ‘buy the dip bitcoin’ is currently at 62.
As of writing, Bitcoin is trading at $79,418.98, reflecting a 7.56% drop in the past 24 hours. Despite the decline, Bitcoin’s market cap has reached $1.57 trillion, pushing it out of the top 10 global assets by market cap. The 24-hour trading volume has increased by 1%, standing at $70.07 billion, suggesting that traders may indeed be buying the dip.
