Bitcoin FOMO: Social Media Users Calling To Buy Sub-$66,000 Dip
June 14 2024 - 8:00PM
NEWSBTC
Data shows that traders on social media have been calling to buy
during the latest Bitcoin dip below $66,000, a sign that FOMO is
active in the market. Bitcoin Investors Are Displaying FOMO After
The Recent Decline As the analytics firm Santiment pointed out in a
new post on X, the recent drawdown in the cryptocurrency has
instigated the second-largest spike of buying interest in social
media users in the past two months. The indicator of interest here
is the “Social Volume,” which keeps track of the amount of
discussion related to a topic or term in which users on the major
social media platforms are participating. Related Reading: Dogecoin
Plunges 11%, But This On-Chain Cushion Could End Decline This
metric makes this measurement by counting the unique number of
posts/threads/messages on these platforms that mention at least one
keyword. The reason the indicator counts the posts rather than the
mentions themselves is that sometimes, a large number of mentions
can appear on social media. Still, the location of these mentions
could be restricted within niche circles. The total number of posts
mentioning a topic only spikes when users in the wider social media
also engage with the term. As such, the Social Volume can provide a
more accurate representation of the actual degree of talk related
to the keyword. In the context of the current discussion, Santiment
has used this indicator to pinpoint data related to terms connected
with buying and selling Bitcoin. The chart below shows how the
social volume for these two topics has changed over the past month
or so. As is visible in the above graph, the combined Social Volume
of phrases related to “buy Bitcoin” has just observed a large
spike. This sharp increase in the indicator has come as the
cryptocurrency price has been going down. It would seem that users
on social media believe this dip to be a worthy buy. The chart
shows that the scale of this buying interest is the largest
witnessed in the market since BTC’s rally above $70,000 last month.
It’s also apparent, however, that BTC topped out not soon after
this Social Volume spike came. This has often been the pattern
observed, as the price becomes more likely to be corrected when
FOMO takes over the crowd. Generally, any negative effects of FOMO
can be canceled out if a sufficient amount of FUD also arises in
the market simultaneously. As highlighted in the graph, though, the
Social Volume of the terms related to “sell Bitcoin” has stayed low
amid the spike in calls for buying. Related Reading: Solana Set For
“A Major 53% Price Move,” Analyst Reveals Why As such, this high
amount of optimism around the drawdown could suggest that the
bottom is perhaps not here for the cryptocurrency yet. BTC Price It
would appear that the bearish effect of the social media FOMO may
already be influencing Bitcoin as its price has seen a further drop
below $66,000 following the Social Volume spike. Featured image
from Dall-E, Santiment.net, chart from TradingView.com
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