TL;DR
- Santiment reports an increase in mentions of “buying the dip,” although the market remains in a downtrend with no clear signs of recovery.
- Whales have sold more than 6,800 BTC in the last week, but the accumulation of stablecoins suggests that some investors are preparing for new purchases.
- News about figures like Trump, Musk, and Jerome Powell has influenced the market, with varying effects depending on context and traders’ perceptions.
Mentions of “buying the dip” have reached levels not seen since July of last year, according to an analysis by Santiment.
However, this increase in conversation has not been reflected in the crypto market, where prices have continued to fall. The platform suggests that excessive enthusiasm among retail traders is usually a sign that recovery is not imminent. Instead, it recommends watching the behavior of whales, as their movements often anticipate trend changes.
🤷 Traders are showing a very high level of confidence that this dip is 'the one to buy', according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough… pic.twitter.com/nM99sLw4v3
— Santiment (@santimentfeed) February 28, 2025
What Are the Whales Doing?
In the last week, whales have sold more than 6,800 BTC, the largest liquidation since last summer. Santiment points out that when they begin to accumulate again, the market could start showing signs of recovery. Among the assets with the most whale activity are MakerDAO, MATIC, Floki Inu, Quant Network, and Wrapped Bitcoin. An increase in stablecoin holdings has also been detected, suggesting that some large investors are preparing capital for new purchases.
The Market Awaits a Turning Point
The analysis highlights that prices tend to move in the opposite direction of general expectations. As optimism around buying the dip decreases, a rebound is more likely. Recently, the market narrative shifted to a more pessimistic tone, which has historically preceded recoveries. The drop in trader confidence, along with accumulation by institutional investors, could mark a turning point in the coming months.
Santiment also analyzed the influence of public figures on market behavior. Negative news about Donald Trump has generated downward pressure, while mentions of Elon Musk have led to slight increases, especially in the memecoin market. Changes in Federal Reserve monetary policy have had a substantial impact: rate cuts have favored price rebounds, while rate hikes have caused sharp declines.
