Crypto Market Cap Dropped 4.25%, With BTC & ETH Price Slipped to $56K & $2.3k

Low enthusiasm for "buying the dip" shows cautious trader response to price decline. Meme coin interest remains low, indicating reduced trader interest

The cryptocurrency market experienced a significant downturn on September 4, with total market capitalization dropping by over 4.25% to around $1.98 trillion.

Bitcoin (BTC) and Ethereum (ETH), two of the largest cryptocurrencies by market cap, saw their prices slip to $56,050 and $2,375, respectively.

This decline has sparked fear among traders, who are not fully committed to either bullish or bearish positions.

Santiment, a market intelligence platform, notes that the recent drop has led to increased chatter about a potential “bear market.”

Some traders are unsure if this recent dip is just another attempt to push out weak investors or if it’s a sign that Bitcoin could fall even further, possibly down to $40,000.

While there has been a noticeable increase in talks about a “bear market,” there’s also been a slight rise in more positive terms like “bull market.”

This suggests that some traders are still hopeful for a rebound.

However, the overall mood remains cautious, with less enthusiasm for “buying the dip” compared to previous price drops.

Despite the recent drop in prices, there hasn’t been a significant increase in discussions about buying assets at lower prices.

Unlike the excitement seen during the July 4 and August 4 dips, this latest decline has not sparked much interest among traders.

In addition, talks about lower Bitcoin price targets, like $40,000 to $45,000, haven’t increased as much as expected.

This might indicate that traders are waiting for Bitcoin to get closer to $50,000 a key psychological level before they become more concerned about the possibility of further drops.

Currently, there is a lack of significant discussion around both high and low targets, suggesting that traders are not yet fully engaged in either bullish or bearish positions.

Santiment also looked at how much people are talking about speculative “meme coins” like DOGE, BONK, and WIF.

These coins often reflect the mood of the market.

While there has been a slight increase in discussions about these coins, it’s much less than what was seen earlier this year in March, April, or even June.

The low interest in meme coins suggests that traders are not as eager to take risks, which often happens when the market is at a high point.

Instead, it seems the market is in a waiting phase, with only a small rise in interest in these risky assets.

Overall, Santiment’s analysis of crowd social trends and market psychology indicates a cautious mood among cryptocurrency traders in the wake of recent price drops.

While there are some discussions about potential bear markets and lower Bitcoin price targets, these conversations are not yet widespread.

Additionally, enthusiasm for “buying the dip” remains relatively low, and interest in high-risk meme coin conversations is minimal.

These observations suggest that traders are hesitant to fully commit to either bullish or bearish positions and are likely waiting for clearer market cues before making significant moves.

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