Google Trends data reveals a significant decline in worldwide search interest for bitcoin, reaching its lowest weekly level since October 2023. This downturn occurs despite a remarkable 142% surge in bitcoin’s price over the past year, climbing from $26,850 to $64,919.
The global search volume for “bitcoin” stands at 17 for the week ending October 12, a huge drop from its peak value of 100 in May 2021. This trend is mirrored in the United States, where the search volume dipped to 16, its lowest level since October 14, 2023. Interestingly, peak weekly interest in bitcoin occurred in March 2024, as the cryptocurrency approached its all-time high of nearly $74,000. This surge was accompanied by spot Bitcoin exchange-traded funds recording almost $10 billion in daily trading volume in the US.
Read Also: Are we in Altseason Yet?
Does low bitcoin search indicate bearish price?
Contrary to expectations, low search volume doesn’t necessarily predict bearish price action. Historically, bitcoin has demonstrated resilience, even thriving during periods of diminished search interest. For instance, when search interest dropped below 20 in late January to early February, bitcoin subsequently soared from $41,000 to nearly $71,500.
Bitget Research chief analyst Ryan Lee, says that buying during periods of low search volume can be a rational strategy. Lee notes, “During the ‘market stagnation period’ from May to September 2023, this was an excellent opportunity to build positions while waiting for a major market rally.”
Read Also: What is Bitcoin Halving and Why does it Matter to Crypto Investors?
A mixed picture for other cryptocurrency-related terms
Other cryptocurrency-related terms present a mixed picture. While “Ethereum” and “crypto” search volumes have declined, “Solana” reached its peak weekly search volume in May, surpassing its prior September 2021 peak. However, its interest has since waned to 31. NFT search volume remains stagnant, hovering around 4-5, dramatically down from its January 2022 highs. DeFi interest has stayed relatively consistent over the past two years, fluctuating within the 30 range, with a peak in July 2021. The search term “on-chain” achieved an all-time high in June but has since plummeted to 8. This decline suggests fading interest in blockchain analytics.
Read Also: The U.S. Inflation-Crypto Conundrum: What It Means for Investors and the Future of Digital Assets
Memecoins have experienced renewed popularity, with search volume spiking to 57. This resurgence follows Murad Mahmudov’s “memecoin supercycle” discussion at Token2049, sparking significant community debate. Also, artificial intelligence (AI) has reached peak interest, reflecting its growing relevance in crypto projects.
The crypto market appears to be awaiting a fresh catalyst, as search interest and volumes fluctuate. This uncertainty shows the complex dynamics driving cryptocurrency markets. Bitcoin’s recent decline to its lowest level in a year can be attributed to a complex interplay of factors, including market sentiment, influenced by negative news, regulatory concerns and overall economic conditions. Additionally, competition from alternative cryptocurrencies could be drawing investors away.
Bitcoin Dominance
Meanwhile, Bitcoin dominance (BTC.D) has reached a bullish level, showing parabolic growth. In scenarios like this, altcoins are likely to lose market share and experience downward pressure as more capital flows into bitcoin. Historically, such rapid rises often lead to a sharp correction, and signs of bearish divergence are emerging. Currently at 58.8%, BTC.D is close to a critical resistance around the 62% to 63% with support at 52%. If BTC.D fails below the support level, this would likely confirm a downward shift. A significant drop in BTC.D could pave the way for the long-awaited altcoin season, as capital rotates back into altcoins amidst a potential Bitcoin correction. At the time of writing, BTC is trading around $68,000 with a 9.1% increase in the past 7 days, according to data from CoinGecko.
Read Also: Tron (TRX) Price Increase: Key Factors Behind the Surge Why the Crypto Market is Crashing: Key Factors Explained
Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.
