Optimistic sentiments dominated crypto social media, with advocates encouraging leveraging price downturns, even amid a single-day decline of over 10% in Bitcoin.
As per blockchain data provider Santiment, the volume of “buy the dip” mentions on platforms such as Telegram, Reddit, Twitter, and 4chan surged to levels exceeding 323, a milestone not observed since March 2022.
The surge in “buy the dip” sentiment followed a significant decline in the price of Bitcoin (BTC), the leading cryptocurrency by market capitalization. BTC’s abrupt dip below $41,000 reportedly led to the liquidation of numerous leverage positions, totaling over $700 million in long liquidations within a 24-hour period.
The widespread market downturn was purportedly triggered by a Matrixport report suggesting that the U.S. Securities and Exchange Commission (SEC) could reject all spot Bitcoin ETF applications in January. However, crypto traders swiftly labeled the news as fear, uncertainty, and doubt (FUD), reallocating capital towards anticipated price gains.
As per fiatons.com’s report, Deribit experienced notable interest in $50,000 BTC call options set to expire by January 26, aligning closely with industry experts’ projections of approval for at least one spot BTC ETF by Gary Gensler’s SEC, anticipated within the next two weeks.
Bullish sentiment has been bolstered by several meetings between issuers and the securities regulator. Notably, on January 3, the SEC conducted emergency meetings with Nasdaq and the NYSE to deliberate on BTC ETFs, potentially paving the way for listings on major exchanges in the second quarter of this year.
In the meantime, Bitcoin has bounced back from its decline, reaching a value above $44,000 on January 4. Concurrently, entities such as Fidelity, Grayscale, and VanEck have initiated Form 8-A filings. These filings mark the start of the securities registration process with the SEC, a necessary procedural phase preceding the potential introduction of an ETF into the market.
