According to CoinDesk, social chatter turned bullish on Wednesday after a speculative report about a potential delay in the expected spot bitcoin ETF launch in the U.S. led to a 5% drop in the leading cryptocurrency. The number of 'Buy The Dip' mentions on social media rose to 323, the highest since March 25, 2022, according to data tracked by blockchain analytics platform Santiment. The spike occurred after bitcoin's price dropped sharply to $41,000 within hours, shaking out excess leverage from the market. 'Buy the dip' is a popular narrative in the crypto community, indicating an intention to purchase the token when the price drops.
Santiment's Social Trends indicator tracks chatter across Telegram, Reddit, and 4Chan to identify keywords or topics that have sparked interest. While the spike in the number of 'buy the dip' mentions suggests bullish crowd sentiment, historically, it has marked deeper price pullbacks. Throughout the 2021 bull market, spikes in the buy-the-dip calls coincided with or were followed by another leg lower in prices. Pullbacks eventually found a floor with the crowd leaning neutral-to-bearish. At the time of writing, Bitcoin was trading at $43,200, representing a 0.8% gain on the day, according to CoinDesk data.