Bitcoin Hits $95.5K As Dip-Buying Sentiment Soars To 8-Month High

Bitcoin’s price tumbled to $95.5K today, sparking a surge in dip-buying discussions across crypto communities. According to recent data, this level of enthusiasm hasn’t been seen since August 4th, during a major market crash. Since that crash, Bitcoin’s market cap has climbed by 81%, underscoring the potential for recovery following sharp declines. With Bitcoin falling as low as $95.5K today, the ratio of crypto discussions that are about buying crypto's dip has reached its highest level in over 8 months. The last time we saw the crowd nearly this enthusiastic about dip buying was the major crash on August 4th. Since… pic.twitter.com/39NlpnGMCs — Santiment (@santimentfeed) December 20, 2024 However, despite Bitcoin reaching an all-time high just three days ago, average wallet returns (30-day MVRV) have dropped to -1.9%. This marks the lowest level of returns since the bull rally began on October 10th. The data suggests that many traders bought during the peak of market euphoria, leaving their positions underwater as the price corrected. Historically, Bitcoin’s 30-day MVRV averages around 0% due to the zero-sum nature of markets. Negative MVRV readings can signal potential buying opportunities, as they indicate a majority of recent traders are at a loss. While this doesn’t guarantee the current price is the local bottom, employing a dollar-cost averaging (DCA) strategy during such dips has historically benefited portfolios over time. When looking to buy low (or sell high), don't just look at prices… Look at how competing traders have performed. Bitcoin's average returns (based on wallets making at least 1 transfer in the past 30 days) have a -1.9% return, despite BTC's all-time high happening just over 3… pic.twitter.com/vAXZMFCmjt — Santiment (@santimentfeed) December 20, 2024 Adding to the volatility, $9.4 billion worth of Bitcoin left exchanges in 2024, largely driven by the success of U.S. Bitcoin ETFs. December 19 marked a historic moment as Bitcoin spot ETFs experienced their largest single-day net outflow ever, totaling $680 million. $9.4B worth of BTC left exchanges in 2024, largely due to the success of Bitcoin ETFs pic.twitter.com/Q4m0NKEH1O — IntoTheBlock (@intotheblock) December 20, 2024 Fidelity’s FBTC led with $208.5 million in outflows, while BlackRock’s IBIT remained steady. This also ended a 15-day streak of ETF inflows for Bitcoin and an 18-day streak for Ethereum ETFs. The Bitcoin spot ETF had a total net outflow of $680 million on December 19, the highest single-day outflow in history and the first single-day net outflow in 15 days. https://t.co/59u0BnEqLG pic.twitter.com/B0t1WA40GG — Wu Blockchain (@WuBlockchain) December 20, 2024 In the past 24 hours, Bitcoin fell 4.22%, and Ethereum dropped 7.97%. While short-term fluctuations persist, the dip-buying sentiment suggests traders remain optimistic about the long-term potential of the leading cryptocurrencies. [BREAKING] The U.S. BTC ETFs just experienced their LARGEST net outflow since launch: $671.9M! #Fidelity 's FBTC led the outflows with a record $208.5M, while #BlackRock 's IBIT stayed steady with a $0 net flow. This also marked the end of a 15-day inflow streak for BTC ETFs… pic.twitter.com/vZruAoUCF0 — Spot On Chain (@spotonchain) December 20, 2024 Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: sinenkiy/ 123RF // Image Effects by Colorcinch