Bitcoin is getting serious attention from all over the globe after its recent uptick beyond the mammoth $12,000 price mark. More people are now getting interested in the digital asset as its price has taken a bull run trajectory. The increased interest is clearly evident from one major thing that helps access information regarding bitcoin, Google search.
At the start of April, bitcoin was floating around in the lower $4,000s and since then it has majorly been an upward ride from the asset with a few stumbles here and there. It has come a long way with its price at $11,885 now. This rise in price also resulted in a subsequent increase in Google search for the term “bitcoin”, as evident from the following chart taken from Google Trends.
The search volume that was going stale from November last year is now going up significantly as the bearish run has been replaced by a bull run. Since the price spike, investors are looking into the aspect of investing in this asset based on its past trend and current future expectations.
Although early adopters have been through the troublesome bear run that lasted for quite long, new investors are now also expected to flock into this space in large numbers with the hopes of getting huge benefits in a short interval of time.
The bull run of 2017 that took bitcoin to $20,000 within a matter of days resulted in many becoming “bitcoin millionaires”, as they are called. Now, people are expecting a bull run like that of 2017 again. Expectations for bitcoin to cross its all-time high (ATH) price are also floating around.
If bitcoin is able to do that again, it will shake the entire financial market and people who stepped into this space timely are expected to reap huge benefits. But how exactly does bitcoin search volume affect the price of the digital asset?
Bitcoin price spikes have been associated with Google search volume increase in the past as well. This signifies that as the price rises, more people get interested in the asset and want to know more about it. Some are trying to figure out the perfect buying window for the asset while some are just trying to figure out the credibility of the asset based on its price.
Overall, bitcoin gets attraction from all around the globe and this increases the chances of adoption of this asset. As the adoption increases, more people start buying the asset thus taking its price up based on the simple supply-and-demand principle.
With the price spike, the flow of new investors into the crypto space is also constructive for this nascent world. It has just been over a decade since bitcoin came to the global financial scene after the global financial crisis of 2008. Despite the promises that it brings along with it, the usage of bitcoin in illegal activities such as money laundering and in illegal marketplaces like the dark web puts a cover of negativity around it.
Due to this, the major connotation attached with bitcoin in the mainstream media is negative which prevents new incomers from trusting the asset. Besides, there is no physical backing of the asset which keeps the price floating and not fixed increasing the uncertainty associated with it. Due to this uncertain and volatile behaviour, institutional investors also stay from touching the “dirty world” of bitcoin and cryptos.
Despite all the negative aspects, price spikes put the negative elements associated with bitcoin in the background putting sole focus on the price only. Price spikes create the flow of huge capital into the crypto world thus increasing the overall market cap of this space. Since bitcoin is largely poised against the banking system, increased capital inflow will increase its chances of overthrowing the centuries-old debt-based banking system.
All in all, the search spike in bitcoin comes off as welcoming for the entire community of cryptos since it just highlights the increased interest in this nascent ecosystem around the globe. Although not all those searching bitoin are going to buy it, the digital asset is at least meeting one of its goals: exposure.
Crypto is now open to tourists again.
— Muneeb Ali (@muneeb) June 22, 2019