Social media mentions of crypto dip buying have rocketed to their highest level since last July amid a crypto market rout that recently sent Bitcoin under $80,000.
Santiment’s social sentiment tracker found that traders’ discussions on various social media channels like X, Reddit and Telegram between Feb. 25 and 26 are “showing a very high level of confidence” that this dip is the “the one to buy,’” the platform said in a Feb. 28 post to X.
It’s the highest level of crypto dip-buying interest in seven months, it added.
Bitcoin dropped below $90,000 on Feb. 25, a day after US President Donald Trump announced his planned 25% tariffs on Canada and Mexico are going forward.
The price has since shed even more of the gains made post-US election, dropping below $80,000 on Feb. 28, after Trump threatened a further 10% tariff on China, and amid other macroeconomic uncertainty.
However, the analytics platform says the high interest in buying the dip isn’t necessarily a signal to jump into the market because it can often move in the opposite direction of expectations.
“Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough pain has hit retail traders to justify a bounce,” Santiment said.
“Markets move in the opposite direction of the crowd’s expectations, so look for declining optimism and shrinking levels of buy-the-dip calls as a bullish signal.”
Santiment’s tracker sifts through crypto-specific social media channels such as X and Telegram for the top 10 words that have seen the most significant increase in social media mentions compared to the previous two weeks, according to its methodology.
Bitcoin (BTC) has retreated over 21% in the past 30 days and is down 5% in the last 24 hours, trading at around $80,400, according to CoinMarketCap data. Ether (ETH) is down over 30% in the past 30 days and has fallen 7.54% in the last day, trading at around $2,139.
In a follow-up post, Santiment said it is unsurprising prices are falling even further after the “retail crowd was all over the prospects of a dip buy.”
“Look for the crowd becoming disinterested or despondent as a sign that the real dip buy opportunity has arrived,” the platform said.
Google Trends data shows a similar narrative playing out as search interest in “buy the dip” spiked to 100 on Feb. 26 when looking over a one-week timeframe. However, search interest has since dropped to a score of 49 out of 100.
Meanwhile, searches for the term “crypto” hit its highest level of 100 in the last seven days on Feb. 25 and is currently sitting at 87 out of 100.
A value of 100 is classed as peak popularity for the term, according to the Google Trends FAQ, while a score of 0 means there was relatively low volume for the term on that day.