Recent days have witnessed a surge in “buy the dip” declarations across Reddit, X, 4chan, and Bitcoin Talk as Bitcoin experienced a decline below $60,000 for the second time in four months. Santiment, a blockchain data analysis platform, meticulously monitored the frequency of this phrase across these platforms, underscoring discussions among crypto investors about Bitcoin’s current phase within the bull market.
Bitcoin’s value, as per CoinGecko data, stood at $58,900 with a 4.2% decrease over the past 24 hours at the time of this report, marking its lowest point since May 3. In an interview with CNBC on July 1, Tom Lee, founder of financial research firm Fundstrat, attributed much of the recent pessimism to Mt. Gox’s impending transfer of $9 billion in Bitcoin to its creditors by the end of July.
There is apprehension among some market participants that a substantial number of Mt. Gox’s 127,000 creditors might sell off their recovered Bitcoins, potentially causing a further drop in Bitcoin’s price. Lee, however, refrained from predicting when the market might bottom out, maintaining his earlier forecast that Bitcoin could reach $150,000 by the end of 2024.
According to Farside Investors data, another factor contributing to negative sentiment could be the intermittent inflows into spot Bitcoin exchange-traded funds, observed on only six of the last 18 trading days. Kudret Ayyldr, research director at GCM Investment, highlighted concerns about Bitcoin’s failure to sustain levels above $67,500 since April. In a July 3 communication to his 19,300 followers, Ayyldr shared insights on the matter.
The Crypto Fear and Greed Index, which gauges market sentiment towards Bitcoin and the wider cryptocurrency market, currently stands at 44 out of 100, indicating a state of fear. It plummeted to 31, its lowest point in 18 months, on June 25, and has since fluctuated between 30 and 53.
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Disclaimer: This article does not provide investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research before making any decisions.
