Recent days have witnessed a surge in “buy the dip” declarations across Reddit, X, 4chan, and Bitcoin Talk as Bitcoin slid below $60,000 for the second time in four months. Santiment, a blockchain data analysis platform, monitored the frequency of this phrase across these forums, reflecting the current sentiments among cryptocurrency investors regarding Bitcoin’s market cycle.
Bitcoin, as per CoinGecko data, was trading at $58,900, marking a 4.2% decline in the past 24 hours at the time of reporting. This figure represents the lowest price level since May 3. Tom Lee, founder of Fundstrat, discussed on CNBC how the impending transfer of $9 billion worth of Bitcoin by Mt. Gox to its creditors by the end of July has contributed significantly to recent negative sentiment.
There is apprehension that if a substantial number of Mt. Gox’s 127,000 creditors choose to sell their recovered Bitcoins, it could potentially precipitate a further decline in Bitcoin’s value. Lee, while uncertain about the exact timing of the market bottom, remains steadfast in his prediction that Bitcoin could surge to $150,000 by the close of 2024.
Additional data from Farside Investors highlights that negative sentiment could also be stemming from spot Bitcoin exchange-traded funds, which have seen inflows on only six of the last 18 trading days. Kudret Ayyldr, research director at GCM Investment, pointed out concerns over Bitcoin’s failure to sustain levels above $67,500 since April. Ayyldr shared these insights with his 19,300 followers on July 3.
The Crypto Fear and Greed Index, a gauge of market sentiment towards Bitcoin and the broader crypto market, currently stands at 44 out of 100, indicating a state of fear among investors. This index had dropped to its lowest point in 18 months on June 25, hitting 31, and has since fluctuated between 30 and 53.
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Disclaimer: The information provided here is not intended as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.