The data shows that social media users responded to the recent drop in the price of Bitcoin and other cryptocurrencies by calling to buy.
Bitcoin Dip Is Worth Buying According to the Crowd on Social Media
In a new post on X, on-chain analytics company Santiment talked about the sentiment on major social media following the market-wide price drop.
The relevance indicator here is “Social Volume,” which tells us about the total amount of discussion a certain topic or term receives from social media users.
This metric measures its value according to the number of posts/messages/threads that contain at least one mention of the topic. The reason it doesn’t count the mentions themselves is so that the few external posts with a significant number of mentions don’t skew the data themselves.
Now, in order to determine the sentiment of investors, Santiment filtered the Social Volume of cryptocurrencies using the terms related to ‘buy’ and ‘sell.’ Below is a chart shared by a analytics company that shows the trend in these metrics 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 graph, cryptocurrency Social Volume of purchase-related terms has increased following the recent dip in the prices of Bitcoin and other assets.
At the same time, topics related to sales remained at very low levels, suggesting that social media users are more confident about the bearish action providing another opportunity to accumulate.
This is the fourth time in the past month that social media users have reacted to a drop in the price of Bitcoin by calling for more purchases. Historically, extremes of Fear Of Missing Out (FOMO) have been what led to peaks in cryptocurrencies, but in the case of these recent events, the market has seen a boost behind them.
The trend is probably down to the fact that these buy calls came only after the price went down and not during the rally. With another increase in volume on Social Volume from buy-related terms, it is possible that this effect seen in the last few spikes may follow this time as well.
The indicator may still be one to keep an eye on in the near future, however, as continued market excitement in the event of a Bitcoin uptrend revival could result in the bearish effect FOMO has been associated with in the past.
BTC price
At the time of writing, Bitcoin is trading around $96,900, up more than 2% over 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
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