A bullish outlook prevailed on cryptocurrency social media as advocates encouraged taking advantage of price declines even as Bitcoin fell over 10% in a single day.
According to blockchain data provider Santiment, the number of “Buy the Dip” views on platforms such as Telegram, Reddit, Twitter and 4chan have skyrocketed, exceeding 323 not seen since March 2022.
Buy Bitcoin Dip Social Volume and USD Price | Source: Santiment
Buy-the-dip sentiment rose following a sharp drop in the price of Bitcoin (BTC), the leading crypto token by market capitalization. BTC's brief plunge below $41,000 reportedly unwound many leveraged positions, with over $700 million in long liquidations occurring in 24 hours.
The overall market decline was reportedly caused by a Matrixport report that suggested the US Securities and Exchange Commission (SEC) could reject all spot bids for Bitcoin ETFs in January. However, it didn't take long for crypto traders to label the news as fear, uncertainty and doubt (FUD) and deploy capital on predicted price increases.
As crypto.news reported, Deribit saw strong interest in $50,000 BTC call pots expiring on January 26, almost two weeks after industry experts received SEC approval for at least one spot BTC ETF Gary Gensler predicted.
Several meetings between issuers and the securities regulator have tempered the bullish mood, and on January 3, the SEC held emergency meetings with Nasdaq and the NYSE to discuss BTC ETFs, which could lead to listings on major exchanges by the second quarter of this year .
Meanwhile, Bitcoin has recovered from its decline and surpassed $44,000 on January 4 after issuers including Fidelity, Grayscale and VanEck filed Form 8-A. This form signals securities registration with the SEC, which is procedural before an ETF is brought to market.
Bitcoin price on January 4th according to Matrixport post | Source: TradingView
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