Bitcoin is over $ 40,000 after starting the new year under $ 30,000 and trading under $ 4,000 less than a year ago. The asset’s trajectory was “only up” – but could the collapse in Google search trends for the very first cryptocurrency be a sign that the bullish uptrend is about to end too?
Bitcoin’s unstoppable bull run – not unstoppable?
The world looks in amazement at the latest Bitcoin Trader rally . Going from under $ 4,000 to over $ 40,000 in just one year is no easy feat and has required an influx of over $ 500 billion worth of capital.
Institutions seem more than happy to pay tens of thousands of dollars per coin. Throughout 2019 and early 2020, analysts used a certain signal to decipher whether a bull market had started or not – Google Trends.
In the last few months, more and more people searched for Bitcoin on Google, but now the trend has apparently started to weaken, the search queries, e.g. for buying Bitcoin cheaply, will be fewer.
Is Google Trends a „poor man’s sentiment indicator,“ as a certified financial analyst and crypto investment manager claims?
Could falling Google interest be a sign of a BTC correction?
Timothy Peterson of Cane Island Global Macro believes that if the trend on Google Trends breaks, the price of Bitcoin will soon follow suit.
The cryptocurrency is in its historically second strongest upward trend and has easily left 2017, which put the asset on the map in the first place.
The latest rally has the potential to dwarf everything 2017 was capable of and has already doubled its previous all-time high from this year. Even if the short-term trend breaks, the long-term trend is still up.
There could also be more to the collapse of Google Trends than Peterson realizes. Using Google as a sentiment barometer will become less and less effective over time.
And why? Because more and more people know exactly what Bitcoin is and what it means – there is less need to look for information about it.
Just because people stop searching for terms like „how to send an email“ doesn’t mean email is suddenly dead. At some point, technology and the search for new information about technology diverge and don’t look back any more.
At that point the technology will be widespread enough to last for the long term. Is this where Bitcoin is now – or are things about to turn around?