Data shows that social media users have responded to the latest price drop in Bitcoin and other cryptocurrencies by calling to buy.
Bitcoin dip worth buying according to the social media crowd
In a new after at
The indicator of relevance here is the “Social volume”, which tells us about the total amount of discussion a particular topic or term receives from social media users.
This metric measures its value in terms of the number of posts/messages/threads that contain at least one mention of the topic. The reason the mentions themselves are not counted is so that a few outliers with a significant number of mentions do not in themselves skew the data.
To determine investor sentiment, Santiment has now filtered social volume on cryptocurrencies using terms associated with ‘buy’ and ‘sell’. Below is the chart shared by the analytics company showing the trend in the metric for these terms over the past month:
The value of the metric appears to have spiked for terms related to buying in recent days | Source: Santiment on X
As shown in the chart, the cryptocurrency’s social volume for purchasing terms has soared following the latest decline in the prices of Bitcoin and other assets.
At the same time, topics related to selling have remained at a much lower level, indicating that social media users are quite convinced of the bearish action that simply provides a new opportunity for accumulation.
This is the fourth time in the past month that social media users have responded to Bitcoin’s price drops by calling to buy more. Historically there has been an excess of it Fear of missing out (FOMO) has been something that has led to peaks for cryptocurrencies, but in the case of these recent peaks, the market has actually seen a rise afterwards.
The trend may have something to do with the fact that these calls to buy came after a price drop and not during one collection. With another spike in social volume appearing for purchase-related terms, it’s possible that this effect we saw in the last few spikes will follow suit this time around.
However, the indicator could still be one to watch in the near future as further market excitement in the event of a renewal of Bitcoin’s uptrend could trigger the bearish effect that FOMO has seen in the past is often associated.
BTC price
At the time of writing, Bitcoin is trading around $96,900, up more than 2% from the past week.
Looks like the price of the coin has been sliding down over the last couple of days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com