Buy-the-Dip Sentiment Is Returning — How Far Can the Crypto Market Recover?
Buy-the-dip sentiment is returning, evidenced by rising stablecoin inflows and increased accumulation across wallet sizes.Summary
The total crypto market capitalization has rebounded above $2.3 trillion from a low near $2.0 trillion, signaling a return of buy-the-dip sentiment. Key indicators supporting this include a reversal in stablecoin inflows to exchanges, with the 7-day average of ERC-20 stablecoins flowing in doubling to $102 billion, suggesting readiness to deploy capital. Furthermore, Glassnode's Accumulation Trend Score shows wallets of all sizes, particularly those holding 10-100 BTC, shifting to aggressive accumulation. Whale activity, tracked by Lookonchain, also shows large accumulations of BTC and ETH withdrawn from exchanges. For a sustainable recovery, analyst Daan Crypto Trades suggests the total market capitalization must hold above the $2.3 trillion level, which corresponds to Bitcoin stabilizing above $71,000, to potentially target a recovery toward $2.8 trillion.
(Source：BeInCrypto)