Triggered by a brief drop under $41,000, a plunge occurs.
Crypto social media platforms were filled with bullish sentiments as supporters encouraged buying the dip, despite Bitcoin’s 10% drop in a single day. Blockchain data provider Santiment reported a surge in “buy the dip” calls on platforms such as Telegram, Reddit, Twitter, and 4chan, reaching levels not seen since March 2022.
The surge in buy the dip sentiment followed a significant decline in Bitcoin’s price, the leading cryptocurrency by market cap. The price drop reportedly led to the liquidation of over $700 million in long positions within 24 hours as traders were forced to exit their leveraged positions.
The decline in the broader crypto market was believed to be triggered by a report from Matrixport, suggesting that the U.S. Securities and Exchange Commission (SEC) might reject all spot Bitcoin ETF applications in January. However, crypto traders quickly dismissed this news as fear, uncertainty, and doubt (FUD) and redirected their capital towards anticipated price increases.
Deribit, a popular crypto options exchange, witnessed significant interest in $50,000 Bitcoin call options set to expire on January 26. This interest came as industry experts predicted the approval of at least one spot Bitcoin ETF by SEC Chairman Gary Gensler before that date.
Multiple meetings between ETF issuers and the securities regulator have helped boost bullish sentiment. On January 3, the SEC held emergency meetings with Nasdaq and the NYSE to discuss Bitcoin ETFs, potentially leading to their listing on major exchanges in the second quarter of this year.
Meanwhile, Bitcoin has recovered from its price retracement and traded above $44,000 on January 4. This recovery was supported by issuers such as Fidelity, Grayscale, and VanEck, who submitted Form 8-A filings, indicating their intention to register their securities with the SEC before launching an ETF.
Despite the market dip, Bitcoin’s price has returned to $44,000, showcasing the resilience of the cryptocurrency. Stay updated with the latest news by following us on Google News.
