Bitcoin Enthusiasts are Experiencing FOMO Amidst Recent Price Drops
Insights from analytics firm Santiment reveal that the recent downturn in Bitcoin’s value has led to a significant surge in social media users expressing interest in buying the cryptocurrency, marking the second-highest peak of buying sentiment in the last two months.
- The ‘Social Volume’ metric tracks the level of discussions surrounding a specific topic or keyword among users on various social media platforms.
- It quantifies the number of unique posts, threads, or messages that include the keyword, providing a more accurate gauge of the overall interest in the topic.
- While high mentions may indicate niche interest, a spike in posts across a broader social media audience signifies significant attention.
Santiment’s analysis focused on the discussion related to buying and selling Bitcoin, illustrating a notable increase in social volume for these topics over the past month.
Users on social platforms seem inclined to view the current price dip as an attractive buying opportunity, with the surge in buying interest reaching levels not seen since Bitcoin’s surge above $70,000 last month.
- However, history indicates that rapid increases in social volume often precede market corrections, as excessive FOMO tends to drive prices to unsustainable levels.
- While FOMO can be offset by fear, uncertainty, and doubt (FUD) in the market, the data show minimal mentions of selling Bitcoin amidst the high calls for buying.
This overwhelming optimism during the price decline may suggest that Bitcoin has not yet found its bottom, potentially indicating further downside potential for the cryptocurrency.
Bitcoin Price Movement
The impact of social media FOMO is becoming evident as Bitcoin’s price continues to slide below $66,000 in response to the increased buying sentiment online.
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