coinpedia.org
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Crypto market cap dropped 4.25%, with BTC & ETH price slipped to $56K & $2.3k
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Low enthusiasm for "buying the dip" shows cautious trader response to price decline.
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Meme coin interest remains low, indicating reduced trader interest for high-risk assets.
The cryptocurrency market experienced a significant downturn on September 4, with total market capitalization dropping by over 4.25% to around $1.98 trillion. Bitcoin (BTC) and Ethereum (ETH), two of the largest cryptocurrencies by market cap, saw their prices slip to $56,050 and $2,375, respectively. This decline has sparked fear among traders, who are not fully committed to either bullish or bearish positions.
High Fear, Low Hope In The Market
Santiment, a market intelligence platform, notes that the recent drop has led to increased chatter about a potential “bear market.” Some traders are unsure if this recent dip is just another attempt to push out weak investors or if it’s a sign that Bitcoin could fall even further, possibly down to $40,000.
😯 What are some of the key crowd social trend metrics indicating after this latest dip? Are the necessary panic signs and small trader sell-offs creeping in once again to hint at a quick rebound? We take a quick look in our latest insight: https://t.co/64Tb5j0bGk
— Santiment (@santimentfeed) September 4, 2024
While there has been a noticeable increase in talks about a “bear market,” there’s also been a slight rise in more positive terms like “bull market.” This suggests that some traders are still hopeful for a rebound.
However, the overall mood remains cautious, with less enthusiasm for “buying the dip” compared to previous price drops.
Cautious Response to Price Decline
Despite the recent drop in prices, there hasn’t been a significant increase in discussions about buying assets at lower prices. Unlike the excitement seen during the July 4 and August 4 dips, this latest decline has not sparked much interest among traders.
In addition, talks about lower Bitcoin price targets, like $40,000 to $45,000, haven’t increased as much as expected. This might indicate that traders are waiting for Bitcoin to get closer to $50,000 a key psychological level before they become more concerned about the possibility of further drops.
Currently, there is a lack of significant discussion around both high and low targets, suggesting that traders are not yet fully engaged in either bullish or bearish positions.
Interest in Meme Coins
Santiment also looked at how much people are talking about speculative “meme coins” like DOGE, BONK, and WIF. These coins often reflect the mood of the market. While there has been a slight increase in discussions about these coins, it’s much less than what was seen earlier this year in March, April, or even June.
The low interest in meme coins suggests that traders are not as eager to take risks, which often happens when the market is at a high point. Instead, it seems the market is in a waiting phase, with only a small rise in interest in these risky assets.
What To Expect?
Santiments look at market sentiment suggests that the cryptocurrency market might be closer to a bottom than a top. However, with the overall mood still cautious and no clear signs of extreme fear or greed, the market’s future is uncertain.