The Bitcoin bullish rally continues, with BTC and the other cryptocurrencies on the market increasing its price rapidly. However, this is not a process that emerges from nothing, but is influenced by three important factors: the emergence and advancement of the coronavirus, the proximity of halving, and speculation. We will talk about this last topic and its relationship with Google trends today.
A couple of years ago there was no bullish rally, such as the one that Bitcoin has gone through during the first weeks of 2020. With a substantial increase in the value of the currency, which has allowed it to once again overcome the 10,000 barrier Dollars. And aim at even higher prices.
This growth in the price of Bitcoin is driven by three fundamental factors. In the first place, we have the advance of the coronavirus in China, since being Bitcoin an active reserve of value, an event that threatens global economic stability and causes uncertainty, such as this disease, drives capitals to find where to position their investments to protect against a possible market collapse.
This, of course, drives the demand for BTC in the crypto market, causing prices to rise. Which allows us to conclude that, as long as the tragedy that the coronavirus means continues, so will Bitcoin.
The second factor is related to the proximity of Bitcoin halving. Well, as this is an event that is expected to significantly increase the price of BTC. Its arrival generates bullish expectations in market members. Which want to buy Bitcoins before it is too late to enjoy the profits that halving will bring.
Google trends in prices
Finally, the third factor is speculation. That is, the attempts by traders to buy cheap Bitcoin and sell it expensive, generating a profit. This is probably one of the main supports of the new prices reached, because if market players speculate that the price of the asset will increase. Most likely, they try to acquire it and increase its price along the way.
And this interest in the Bitcoin market, although it is very complicated to measure, can be understood through a tool: Google trends. This is the Google platform that allows you to review which have been the most google keywords in a given period.
In the midst of a bullish rally like the one we are currently experiencing, it is natural that the number of Bitcoin-related searches increases. However, even more interesting is what the search figures can reveal to us about the future of the crypto market.
And, the logic is very simple. The increase in interest in terms like Bitcoin and others related to Google, reveals that there is a significant amount of people researching cryptocurrencies. Of which a proportion is likely to end up investing and therefore demanding Bitcoins.
Therefore, at a time when Bitcoin searches have had a small, but significant increase. We may think that this indicates that there is an important part of the population considering investing in cryptocurrencies. And therefore, that the speculative feeling favors BTC and its growth.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.