Bitcoin (BTC) experienced a slight 2% decline during US trading hours on Tuesday, reaching approximately $25,600. However, investors swiftly seized the opportunity to purchase the dip, resulting in the price stabilizing at $26,000.
Ether (ETH) also underperformed, experiencing a 2.2% decline, but it quickly rebounded to $1,600. Meanwhile, altcoins like Solana (SOL), Polygon (MATIC), and Stellar (XLM) all encountered a drop of more than 4% over the last 24 hours.
Crypto market’s turning point
Amid the robust recent US economic data, which seems to have eliminated the possibility of the Federal Reserve reverting its current strategy, cryptocurrency investors are eagerly anticipating the approval of a spot Bitcoin exchange-traded fund (ETF) that could potentially be the tipping point, ushering in a bullish market sentiment.
Notably, the U.S. Securities and Exchange Commission (SEC) currently has several spot bitcoin ETF applications under consideration, but there’s no assurance that a decision will be reached within this year. In the near term, investors are eagerly awaiting a court ruling in the lawsuit between Grayscale and the SEC – a legal case concerning the SEC’s refusal to approve Grayscale’s endeavor to transform its Bitcoin Trust (GBTC) into an ETF.
Although rumor had circulated that a court verdict might be announced last week, it turned out to be another elusive mirage on the long journey toward an oasis for crypto supporters.
“Buy the dip” mentions level off amidst subdued price action
An increase in mentions of “buy the dip,” a maxim among traders referring to purchasing assets that are discounted relative to fundamentals, on social media forums has gradually decreased during the further decrease in price and sluggish price activity.
“We saw a huge rise in ‘buy the dip’ mentions. This indicates that trader optimism was quite high that there would be a quick market recovery, but looks at how the wishful thinking has died down considerably in the past few days,” said Santiment, a behavior analytics platform for cryptocurrencies, in a Monday note.
The company gathered data from Reddit, X, Telegram, and 4Chan to compile the findings. Decreasing mentions indicated that traders were becoming less confident in a market rebound and that a sense of “pessimism was beginning to take over again as market caps fade,” it said.
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