Bullish Sentiment Surges as Bitcoin Falls
Despite a 10% drop in Bitcoin’s price, the crypto community remains optimistic, encouraging investors to buy the dip. Blockchain data provider Santiment reports a significant increase in “buy the dip” calls on platforms like Telegram, Reddit, Twitter, and 4chan.
Bitcoin Plunge Triggers Buy the Dip Sentiment
The surge in “buy the dip” sentiment follows a sharp decline in Bitcoin’s price. The drop below $41,000 resulted in over $700 million in long liquidations within 24 hours. This market decline was initially attributed to a Matrixport report suggesting that the SEC might reject all spot Bitcoin ETF bids in January.
Crypto Traders Dismiss FUD and Remain Bullish
Crypto traders quickly dismissed the news as fear, uncertainty, and doubt (FUD) and continued investing with confidence. Deribit witnessed significant interest in $50,000 BTC call options set to expire on January 26, indicating expectations for at least one approved spot BTC ETF by Gary Gensler’s SEC.
Positive Meetings with SEC Boost Bullish Sentiment
The SEC’s emergency meetings with Nasdaq and NYSE have further fueled bullish sentiment. These discussions may lead to BTC ETF listings on major exchanges by Q2 of this year.
Bitcoin Recovers Above $44k
Bitcoin has already bounced back from its retrace and is trading above $44,000. Issuers like Fidelity, Grayscale, and VanEck have submitted Form 8-A filings, signaling their intent to bring an ETF to market after completing securities registration with the SEC.
Hot Take: Optimism Persists Despite Price Drop
Despite the recent price drop, the crypto community remains optimistic. The surge in “buy the dip” sentiment indicates a belief in the long-term potential of cryptocurrencies like Bitcoin. Traders have dismissed negative news and continue to invest confidently, with expectations of approved BTC ETFs in the near future. The positive meetings between issuers and the SEC have further fueled this bullish sentiment. As Bitcoin recovers and reaches new heights, it demonstrates resilience and reinforces the confidence of crypto enthusiasts.
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