Data shows that social media users have reacted to the latest price drop in Bitcoin and other cryptocurrencies by calling to buy.
Bitcoin Fall Worth Buying According to Crowd on Social Media
in a new mail On X, on-chain analytics firm Santiment has spoken about the sentiment on major social media platforms following the market-wide price drop.
The relevance indicator here is “Social Volume”, which tells us about the total amount of discussion that a given 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 it doesn’t count the mentions themselves is so that some outlier posts with a significant number of mentions don’t skew the data themselves.
Now, to determine investor sentiment, Santiment has filtered the social volume of cryptocurrencies using terms related to “buy” and “sell.” Below is the graph shared by the analysis firm showing the trend in the metrics of these terms over the last 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, cryptocurrency social volume for purchase-related terms has skyrocketed following the latest drop in the prices of Bitcoin and other assets.
At the same time, sales-related themes have remained at much lower levels, suggesting that social media users are quite convinced that the bearish action simply offers another accumulation opportunity.
This is the fourth time in the last month that social media users have reacted to Bitcoin price drops by calling to buy more. Historically, an excess of fear of missing out (FOMO) has been something that has led to cryptocurrency peaks, but in the case of these recent peaks, the market has actually seen a surge after them.
Perhaps the trend is due to the fact that these buying calls only came after a price drop and not during a rally. As another increase in social volume appears for purchase-related terms, it is possible that this effect seen in recent spikes will occur this time as well.
However, the indicator may still need to be watched in the near future, as increased market excitement in the event of a renewal of Bitcoin’s uptrend could trigger the bearish effect that FOMO has often been associated with in the past.
BTC Price
At the time of writing, Bitcoin is trading at around $96,900, up more than 2% from the last week.
Looks like the price of the coin has been sliding down over the last couple of days | Source: BTCUSDT on TradingView
Dall-E Featured Image, Santiment.net, TradingView.com Chart
