In recent days, the cryptocurrency community has witnessed a surge in the phrase “buy the dip” across popular online forums such as Reddit, X, 4chan, and Bitcoin Talk. This uptick in mentions coincided with Bitcoin’s (BTC) price drop below the $60,000 mark, marking the second such occurrence within a span of four months.
Crypto analytics company Santiment has been monitoring the frequency of these discussions across the aforementioned platforms, noting a lively debate among traders regarding Bitcoin’s current phase in the ongoing bull market.
Courtesy of Santiment
Santiment shared insights on X, indicating that the sentiment among the masses leans towards viewing the price drop as an opportune moment to purchase Bitcoin. At present, Bitcoin’s value hovers at $58,900, reflecting a 4.2% decrease over the past day and hitting its lowest point since May 3, according to CoinGecko’s data.
The lingering shadow of Mt. Gox continues to cast doubt within the market. Fundstrat’s co-founder Tom Lee voiced his concerns on CNBC on July 1, attributing the prevailing bearish mood to the impending distribution of $9 billion in Bitcoin by Mt. Gox to its creditors later in the month.
The apprehension stems from the possibility that a substantial number of Mt. Gox’s 127,000 creditors might choose to sell their reclaimed Bitcoin, potentially driving the price down further. While Lee remains uncertain about when the market will bottom out, he maintains his forecast that Bitcoin could reach $150,000 by the end of 2024.
Adding to the bearish sentiment, data from Farside Investors reveals that spot Bitcoin exchange-traded funds (ETFs) have recorded inflows on only six occasions out of the last 18 trading days.
The confidence in a market rebound isn’t unanimous. Kudret Ayyldr, the Research Manager at GCM Investment, expressed concerns over Bitcoin’s inability to sustain a price above $67,500 since April. In a July 3 post on X to his 19,300 followers, Ayyldr predicted a potential correction that could see Bitcoin’s price retracting to the $48-50K range.
In related news, K33 Research anticipates that Ethereum will surpass Bitcoin in performance following the launch of an ETF.
The Crypto Fear and Greed Index, a barometer for sentiment within the Bitcoin and broader cryptocurrency markets, currently sits in the “Fear” category with a score of 44 out of 100. The index dipped to an 18-month low of 31 on June 25 and has fluctuated between 30 and 53 since then.
Crypto Fear & Greed Index score, courtesy of Alternative.me
Highlighting a misconception in the crypto space, the magazine article titled “‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters” sheds light on the nuances of Bitcoin’s network layers.