Many reports in the past have actually confirmed that bitcoin’s price increase is often followed by a substantial increase in interest in the leading cryptocurrency, specifically from retail financiers. Now, though, the scenario seems rather various.
Bitcoin Price and Interest Usually Correlate
As reported in Q3 in 2015, when bitcoin started hitting highs after highs, months after a severe crash during the peak of the COVID-19 pandemic, the excellent rate motions received broad attention from mainstream investors.
At the time, information from blockchain analytics company Santiment showed that Bitcoin whale addresses grew significantly as numerous big corporations began buying the leading cryptocurrency. At the same time, Google patterns verified a similar surge in interest from retail investors.
Similarly, a huge decrease in BTC costs is generally followed by a decline in volume and interest in the asset. A report last month validated that worldwide Bitcoin interest began going downhill after the rate of the coin fell by majority in May as the crypto market battled with endless FUDs from China.
But Not This Time
While interest and rate peaks usually correlate, it is not the exact same this time as bitcoin conquered the $50,000 mark. In other words, BTC’s worth against the dollar has increased by roughly 70% in a mere month.
According to Google Trends, though, worldwide searches for “Bitcoin” are at their least expensive levels in nearly 9 months. For clearness, information from the world’s biggest search engine is a good indicator for figuring out the level of interest in the field over a period of time.
As displayed in the chart above, the volume of”bitcoin”questions this month is similar to the volume tape-recorded in December last year, when the
cryptocurrency started trading above$19,000. Similarly, the “buy bitcoin” searches worldwide decreased to levels not seen in the past ten months after hitting a 4-year high in January 2021. This validates that the present price rally is not being fueled by retail buzz.
What’s Fueling Bitcoin Price?
While data shows that retail investors are not the reason for the current rise in bitcoin rates, the asset is growing, institutional interest has been strong and need is anticipated to increase.
Furthermore, bitcoin miners who moved from China during the enormous clampdown, which was one of the major reasons for the fall to $30,000, are now settling in other nations and lots of have actually already resumed their mining operations.