YEREVAN (CoinChapter.com) — Bitcoin’s price dropped below $100,000 after a historic peak following Donald Trump’s victory in the U.S. presidential election. The decline coincided with a Federal Reserve announcement, leading to heightened discussions about “buying the dip.” The term reflects renewed investor interest in purchasing Bitcoin during its current downturn.
“Buying the Dip” Sentiment Peaks Amid Bitcoin’s Decline
On Dec. 19, Bitcoin’s social dominance score—a measure of mentions on social media—hit 0.061, according to Santiment. This was the highest level recorded since April 12, when Bitcoin fell from $70,000 to $63,000 within 24 hours. The sentiment also spiked on Aug. 4, as Bitcoin dropped below $60,000 and touched $53,000 shortly after.
Currently, Bitcoin is valued at $97,503.91, according to CoinGecko. The price is down 3.6% over the past 24 hours and 2.4% from last week’s levels. The recent “buying the dip” chatter suggests investor expectations of further price declines, driven by historical patterns of market activity during weekends.
Altcoins Decline Amid Broader Market Downturn
The cryptocurrency market is undergoing a broad correction, with altcoins like Ethereum (ETH) and Solana (SOL) declining 3% to 5% in the last 24 hours. Bitcoin ETFs are also seeing significant outflows after weeks of steady performance.
Despite the overall downturn, a few assets are outperforming the market. Movement (MOVE) surged by 30%, and Zerebro (ZEREBRO) posted an impressive 56% gain over the same period. These tokens stand out in a global market that dropped by 2%, settling at $3.34 trillion. Trading volumes increased by 3.42%, reaching $280 billion.
Google Trends data shows declining global search interest for the term “crypto,” with a score of 75 this week compared to 100 at the beginning of December. St. Helena leads search activity, followed by Nigeria and the Netherlands, reflecting continued interest in cryptocurrencies in these regions despite the market slump.
Federal Reserve Actions Impact Bitcoin Trends
The Federal Reserve’s recent interest rate cut has contributed to Bitcoin’s price drop. While lower rates typically signal economic easing, the Fed also forecasted higher inflation and unemployment in 2025. This mixed message has weighed on market sentiment.
Speculation about Bitcoin’s potential role as a reserve currency has added to the market’s uncertainty. Federal Reserve Chair Jerome Powell clarified that the institution cannot legally purchase Bitcoin. This announcement may have tempered some optimism among investors hoping for institutional adoption.
The Fear and Greed Index, a measure of market sentiment, remains at 62, indicating cautious optimism. With Bitcoin’s price below $100,000, discussions around “buying the dip” reflect investor anticipation of further volatility as the year closes.
