GuShiio.com Traders on social media seem to be keen on bargain-hunting, and the mysterious giant whale has also taken action, but online data analysis platform Sanitation believes that this does not necessarily mean that the best time to buy is here.
Editor: Tim, PANews
As the market plunges, community enthusiasm for bottom-hunting is high
The cryptocurrency market has continued to plummet recently. As Bitcoin fell below the US$80,000 mark, the volume of discussion on bargain-hunting on social media has soared to its highest peak since July last year.
On-chain analysis platform Sanitation posted an article on its X platform account on February 28, pointing out that by monitoring trader discussions on social channels such as X, Reddit and Telegram from February 25 to 26, it was found that market sentiment showed strong confidence in this bargain-hunting.
Market interest in bargain-hunting has climbed to a seven-month peak.
Mysterious giant whale takes action and hoards US$340 million in BTC
According to data disclosed by community members on February 27, a mysterious giant whale address accumulated 4000 BTC during the period when the Bitcoin price fluctuated between US$82,000 and US$85,000. Based on the current Bitcoin market price, the position is worth approximately US$344 million.
Cryptocurrency analyst Saint Pump confirmed that the giant whale address is one of the largest traders recognized in the industry-“Spoofy”.
Spoofy continued to increase its holdings of BTC in the reverse direction during the long bear market triggered by the collapse of the Luna stablecoin and the thunder on the FTX exchange in 2022. Chain data shows that the giant whale purchased a total of 70,000 BTC while the bitcoin price plummeted from US$40,000 to US$16,000.
Misfortunes never come alone, and the macro economy is bad again
Bitcoin fell below the US$90,000 mark on February 25, a day after U.S. President Trump announced that he would implement a 25% tariff policy on Canada and Mexico.
As Trump threatened to impose a 10% tariff on China on February 28 and added other macroeconomic uncertainties, Bitcoin continued to retract its post-election gains and eventually fell below the psychological support level of US$80,000.
Sanitation's public opinion tracking system filters cryptocurrency vertical social media channels to capture the top ten keywords with the most significant increase in mentions in the past 14 days. Data source: Sanitation
The market is reflexive and may not be the best time to enter
However, analysis platform Sanitation pointed out that the market’s high enthusiasm for bargain-hunting may not be the best signal to enter, as asset prices often fluctuate in the opposite direction of expectations.
“Ideally, we are waiting for the euphoria of the market group to subside, which means that retail investors have suffered enough losses to create the conditions for a technical rebound,” Santiment pointed out in its analysis.
“Market trends often run counter to group consensus, so when market optimism gradually cools down and calls for bottom-hunting continue to weaken, they should be regarded as a potential bullish signal.”
Based on its methodology, Sanitation’s public opinion monitoring system scans cryptocurrency vertical social media platforms such as X (formerly Twitter) and Telegram to capture the top ten keywords with the largest month-on-month increase in mentions in the past two weeks.
According to CoinMarketCap data, Bitcoin has fallen by more than 21% in the past 30 trading days, and has fallen another 5% in the past 24 hours. The current price is about US$80400; Ethereum has fallen by more than 30% in the same period, down 7.54% in 24 hours, and is now reported at around US$2139.
Sanitation pointed out in subsequent analysis: “It would not be surprising if the current price of crypto assets fell further after retail investors flocked to the bottom-hunting machine.”
Source: Sanitation
When is a good opportunity to bargain?
Sanitation emphasized in its latest analysis: “The real opportunity to bargain-hunting often occurs when market interest fades or even falls into despair. At this time, special attention should be paid to changes in transaction volume and signals of large transfers on the chain.”
According to Google Trends data, in the week ending February 28, the “bottom-hunting” search popularity showed typical market sentiment reversal characteristics. After soaring to a peak of 100 on February 26, attention for this keyword has now fallen back to 49 points (100-point scale).
Google Trends data shows that search attention for the investment term "bottom-hunting" has recently surged.
