Analysis: Mysterious whale accumulates $340 million in BTC, but is the best bottom-feeding opportunity not yet here?
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Analysis: Mysterious whale accumulates $340 million in BTC, but is the best bottom-feeding opportunity not yet here?
Traders on social media appear eager to buy the dip, and mysterious large whales have already taken action, but on-chain data analysis platform Santiment suggests this may not necessarily mean the best buying opportunity has arrived.
Navigating Web3 tides with focused insightsCompiled by: Tim, PANews
As Market Plunges, Community Enthusiasm for Bottom-Fishing Surges
The cryptocurrency market has recently continued its sharp decline. As Bitcoin fell below the $80,000 mark, discussions about buying the dip on social media have surged to their highest level since July last year.
On February 28, on-chain analytics platform Santiment posted on its X account that monitoring trader discussions across social channels including X, Reddit, and Telegram from February 25 to 26 revealed strong confidence among investors regarding this dip-buying opportunity.
Market interest in bottom-fishing has climbed to a seven-month peak.
Mysterious Whale Moves, Accumulating $340 Million Worth of BTC
Data disclosed by community members on February 27 showed that a mysterious whale address accumulated 4,000 BTC while Bitcoin's price oscillated between $82,000 and $85,000. At current Bitcoin prices, this position is worth approximately $344 million.
Cryptocurrency analyst Saint Pump confirmed that the whale address belongs to "Spoofy," one of the industry-recognized top market manipulators.
Spoofy consistently bought Bitcoin against the trend during the prolonged bear market triggered by the collapse of Luna’s stablecoin and the FTX exchange crisis in 2022. On-chain data shows that as Bitcoin’s price plummeted from $40,000 to $16,000, the whale accumulated a total of 70,000 BTC.
Compounding Misfortunes, Macroeconomic Headwinds Emerge
Bitcoin broke below the $90,000 level on February 25, the day after U.S. President Trump announced a 25% tariff policy on Canada and Mexico.
With Trump threatening on February 28 to impose an additional 10% tariff on China, combined with other macroeconomic uncertainties, Bitcoin continued to give up post-election gains, ultimately breaking below the psychological support level of $80,000.
Santiment's sentiment tracking system filters vertical cryptocurrency social media channels to capture the top ten keywords with the most significant increase in mentions over the past 14 days
Data source: Santiment
Markets Are Reflexive—High Enthusiasm May Not Signal Ideal Entry Point
However, analytics platform Santiment noted that heightened enthusiasm for bottom-fishing does not necessarily signal the best time to enter the market, as asset prices often move inversely to expectations.
In its analysis, Santiment stated: "Ideally, we are waiting for the market's euphoric sentiment to subside, indicating that retail investors have suffered sufficient losses, thereby creating conditions for a technical rebound."
"Market movements often contradict the crowd consensus. Therefore, when market optimism gradually cools and calls to buy the dip weaken, it may instead be viewed as a potential bullish signal."
Santiment's sentiment monitoring system, based on its methodology, scans vertical cryptocurrency social media platforms such as X (formerly Twitter) and Telegram to identify the top ten keywords with the largest week-on-week increase in mentions over the past two weeks.
According to CoinMarketCap data, Bitcoin has fallen over 21% cumulatively in the past 30 trading sessions, dropping another 5% in the last 24 hours, currently trading around $80,400; Ethereum has declined more than 30% over the same period, falling 7.54% in 24 hours, now hovering around $2,139.
In a follow-up analysis, Santiment noted: "It would not be surprising if crypto asset prices fall further after retail investors rush en masse into dip-buying."
Source: Santiment
When Is the Right Time to Buy the Dip?
In its latest analysis, Santiment emphasized: "The real opportunity to buy the dip often emerges when market-wide interest fades or even turns to despair. Attention should be paid to anomalies in trading volume and large on-chain transfer signals."
Google Trends data shows that during the week ending February 28, search interest for the term "buy the dip" exhibited a classic market sentiment reversal pattern. After spiking to a peak value of 100 on February 26, attention to this keyword has now dropped to 49 (on a 100-point scale).
Google Trends data shows recent surging search interest in the investment term "buy the dip"
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