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Many reports in the past have confirmed that bitcoin’s price increase is often followed by a significant rise in interest in the leading cryptocurrency, especially from retail investors. Now, though, the situation seems rather different.
Bitcoin Price and Interest Usually Correlate
As reported in Q3 last year, when bitcoin started hitting highs after highs, months after a severe crash during the peak of the COVID-19 pandemic, the impressive price movements received wide attention from mainstream investors.
At the time, data from blockchain analytics company Santiment showed that Bitcoin whale addresses grew significantly as many big corporations started purchasing the leading cryptocurrency. At the same time, Google trends confirmed a similar surge in interest from retail investors.
Similarly, a massive decrease in BTC prices is usually followed by a decline in volume and interest in the asset. A report last month confirmed that global Bitcoin interest started going downhill after the price of the coin fell by more than half in May as the crypto market battled with endless FUDs from China.
But Not This Time
While interest and price peaks usually correlate, it is not the same this time as bitcoin conquered the $50,000 mark. In other words, BTC’s value against the dollar has increased by roughly 70% in a mere month.
According to Google Trends, though, worldwide searches for “Bitcoin” are at their lowest levels in nearly nine months. For clarity, data from the world’s largest search engine is a good indicator for determining the level of interest in the field over a period of time.
As shown in the graph above, the volume of “bitcoin” queries this month is similar to the volume recorded in December last year, when the cryptocurrency started trading above $19,000.
Similarly, the “buy bitcoin” searches globally declined to levels not seen in the past ten months after hitting a 4-year high in January 2021. This confirms that the current price rally is not being fueled by retail hype.
What’s Fueling Bitcoin Price?
While data shows that retail investors are not the reason for the recent surge in bitcoin prices, the asset is maturing, institutional interest has been strong and demand is expected to rise.
Additionally, bitcoin miners who migrated from China during the massive clampdown, which was one of the major reasons for the fall to $30,000, are now settling down in other countries and many have already resumed their mining operations.