i dont know specifically about this issue from the point of view of hadith, but from the general knowledge and principals of islam, i can say that if dancing is not haram or makruh, at least it is not something that is being encouraged.
i know life is an endowment of Allah swt and should be thanked for. One form of thanking is to live it happily and appreciate it and not live it miserably.
But there are many other ways to living a happy life.
there are a few points which make me think that dancing as a muslim may not be such a good idea:
1- there is a hadith which i dont remember specifically, but i remember its main topic that if a person sleeps without worrying about the problems of other muslims, is not from us (please correct me).
Looking at the above, I wonder how we can dance when muslim children, women and men, old and young are going through the trials and tribulations everywhere in the world.
if we do so, we will be trying to forget them. and that as a muslim is not fare.
2- every act that keeps us away from the remembrance of Allah swt and the day of judgement is not welcomed in islam as a general rule. by indulging in these kind of group activities, it is easy to forget about the above (may Allah swt protect us)
3- according to the hadith (addunya sijnul mumin wa jannatul kafir: Translation; life of this world is prison of the believer and paradise of non-believer) it is clear that this life of ours is a testing ground and not for fun. We should wait for that in the hereafter (inshaallah) and prepare for it.
4- generally, dancing is not used for exercise, but it is used in combination with all other ill acts such as music, alcohol etc.
it is used as a means of finding happiness. The happiness of a muslim should lie somewhere other than this.
Wallahu alam. If i am wrong, I ask for Allah's forgiveness
wassalam