Bitcoin’s (BTC) price has plunged sharply, hitting over $93,000 in a sudden and dramatic decline. The dip has also fueled a surge in investor optimism. The crypto asset’s pullback marks its third consecutive day of losses as macroeconomic influences and profit-taking weigh on the market.
The Crypto Market Bleeds Red
The asset’s downturn intensified on December 19, 2024, after Federal Reserve officials indicated a more gradual approach to lowering interest rates in 2025.
At the time of writing, BTC was changing hands at $94,076, reflecting an 8.12% decline over the past 24 hours. The asset has been trading steadily around the $100,000 price mark since it surpassed the mark for several weeks and experienced a sudden correction.
Despite the bearish movement, the dip was met with an overwhelming response from retail and institutional investors, as bitcoin lovers spent heavily on purchasing the asset. For instance, Florida-based Bitcoin mining firm Hut 8 announced its purchase of 990 bitcoins for $100 million. The investment was executed at an average price of $101,710, bringing its total Bitcoin reserve to 10,096 BTC, currently valued at over $1 billion.
The company claimed the latest purchase is part of its broader capital strategy to optimize its balance sheet performance and funding growth initiatives.
“Buying the Deep” Sentiment Hits 8-Months High
As bitcoin’s price dropped below $95,000, social media conversations about “buying the dip” rose significantly. Data from market intelligence provider Santiment revealed that mentions of the phrase hit an eight-month high.
Interestingly, this pattern mirrors past phases of increased investor optimism, such as the notable sell-off in August. Since then, bitcoin’s capitalization has steadily recovered by 81%.
A 3.30% Increase
According to blockchain analytics firm IntoTheBlock, BTC ownership trends have significantly changed. Over the past week, holdings by large investors grew by 3.30%, indicating increased accumulation during the price dip.
The 30-day metric, however, showed a 95.02% drop, likely due to profit-taking during BTC’s recent peak. Despite these short-term shifts, a 136.17% increase in 90-day ownership highlighted strong buying interest over the longer horizon.
Also, outflows from aggregated exchanges have risen alongside growing holdings, indicating that investors are increasingly moving BTC to private wallets. These spikes in outflow volumes have consistently coincided with recent price declines.
