Despite Bitcoin’s sharp drop, traders across social media are showing high confidence that the downturn is a buying opportunity. 

According to Santiment, discussions around "buying the dip" have spiked across platforms like X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. The surge in optimism suggests that many believe this is the ideal moment to enter the market.

However, analysts at Santiment warn that market sentiment often moves in the opposite direction of crowd expectations. Historically, Bitcoin has only found a true bottom when retail traders lose confidence and optimism fades. 

The firm suggests that for a sustainable recovery, enthusiasm around buying the dip needs to cool down, as retail traders experiencing more pain typically signals the market is nearing stabilization.

Bitcoin is currently priced at $79,080.79, marking an 8.18% decline in the past 24 hours and a 19.40% drop over the weekend, according to CoinMarketCap. The market cap has fallen to $1.57 trillion, reflecting broader risk-off sentiment in global markets. The Fear and Greed Index now stands at 21, a sharp decline that indicates growing fear among investors.

Macroeconomic concerns are further weighing on Bitcoin and risk assets. QCP Capital pointed out that equities, gold, and crypto have all suffered as stagflation fears gain traction. The US administration’s confirmation of a 25% tariff on Canadian and Mexican imports has added to uncertainty, while expectations of tougher trade actions against China are further dampening investor sentiment.

Meanwhile, Bitcoin ETF outflows continue to signal a lack of conviction among institutional investors, with crypto often being the first asset liquidated in volatile markets. Analysts suggest that with few buyers stepping in, the likelihood of further downside remains high.

This week’s Nvidia earnings report and the Personal Consumption Expenditures (PCE) inflation data could act as key catalysts for risk assets. If Nvidia’s AI-driven chip demand outlook weakens or inflation data comes in hotter than expected, markets could face additional selling pressure.

For now, traders remain confident in the dip—but Santiment’s warning serves as a reminder that true recoveries often begin when optimism is at its lowest.