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Bitcoin has exploded in the past month, adding nearly 50% to its price and causing jubilation in the long-suffering cryptocurrency community.
The price of bitcoin, still far from its all-time high of around $ 20,000 per bitcoin, rose through 2020, hitting $ 16,000 this week after falling below $ 4,000 in March.
Despite bitcoin’s giant rally, mainstream interest in bitcoin and cryptocurrencies has failed to return to the same level as when it was at the height of the bitcoin craze in late 2017 and could mean the latest bitcoin price surge still has. a long way to go.
The price of bitcoin has skyrocketed in recent weeks, but many in the bitcoin and cryptocurrency community … [+]
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Interest in bitcoin, as measured by Google search data, is currently unchanged for the past two years, with Google Trends, a barometer used to measure general interest in trending topics, showing that bitcoin’s search volume it is below the level of June 2019, when the price of bitcoin was hovering around $ 10,000.
Many in the bitcoin and cryptocurrency community find this weak popular interest in bitcoin amid rising bitcoin prices to be good for bitcoin in the long run.
“It may seem counterintuitive, but the lack of general interest is actually great news for bitcoin’s price outlook,” financial author and veteran of trade Glen Goodman said via email, adding that there is an increase. of the risk of prices collapsing “when a flurry of excitement traders builds up”.
“These laggards are ‘weak hands’ who tend to panic and sell at the first sign of danger. It is the same phenomenon we see in all asset markets, not just cryptocurrencies. A slow and steady construction of bitcoin and cryptocurrency. a more sustainable increase in prices will favor interest “.
Google Trends data shows that search volume for “bitcoin” remains far below where it was at … [+]
Bitcoin and cryptocurrency traders are aiming for adoption from Wall Street and the growing reputation of bitcoin as a hedge against inflation, contributing more to this latest bitcoin rally than the so-called FOMO (Fear of Missing Out) that swept the world in the 2017.
“I think the retail craze, which is reflected in the data from Google Trends, will eventually come,” economist and cryptocurrency analyst Alex Krüger said via Telegram.
“What you are looking at in trading is what we call a divergence. Usually one would expect the price to converge with the underlying data, but this is too simplistic and ignores that there are other factors driving this bitcoin move.”
Krüger sees the interest of institutional and private wealth management, as well as corporate interest, as driving the latest bitcoin price rally, unlike the retail craze that has pushed bitcoin to dizzying highs of $ 20,000 at the end of 2017.
In October, the payment giant PayPal
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“Basically, bitcoin is a much stronger asset now than it was [three years ago] due to a number of factors, including halving, increased institutional adoption, the emergence of real-world use cases, U.S. publicly traded companies shifting 10% of their balance sheet into asset and payment giants like PayPal accepting cryptocurrencies, “Nicholas Pelecanos, head of trading at blockchain development platform NEM, said via email.
“Historically, bitcoin has witnessed late and early year rallies, so I wouldn’t be surprised if it hits or sets new highs this year, or in the early part of 2021.”
After a long, cold crypto winter since late 2017, the price of bitcoin is again looking for a return to its … [+]
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A return to the $ 20,000 per bitcoin level is something many in the cryptocurrency space have been hoping for in recent years.
Bitcoin’s 2017 FOMO surge and subsequent crash caused much of the financial world to view bitcoin as a flash-in-the-pan, Ponzi scheme, or bubble more akin to the 17th century tulip mania than to the premature dot-com boom of the late 1990s.
“Breaking the all-time high at $ 20,000 would catapult bitcoin back to the front page, so we are likely to see mainstream interest in bitcoin start to take off again,” Goodman said.
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