Bitcoin’s price has been on a pretty steady upward trend since the decade turned at the beginning of the year. January provided upwards of 30 percent gains and early February has seen Bitcoin cross the $10,000 mark.
The good performance from the major cryptocurrency has caused interest to increase, and this is visible on Google trends. The importance of Google trends and Bitcoin’s price is that there seems to be a cyclical correlation which has been coined as a Satoshi cycle.
A Satoshi cycle represents the growth of Bitcoin’s price cause higher interest in Bitcoin that is represented in Google searches, and these searches help boost the market which in turn grows the price, and so on, in a cyclical correlation of growth.
Now, Bitcoin’s searches in the last week alone have grown by an impressive 33 percent, mostly predicated on the news of the coin crossing the important $10,000 mark. This interest can help boost Bitcoin as people’s interest in Bitcoin often turns into an investment because the interest is usually when the price is on the rise.
However, it remains to be seen if the increased interest in google will be big enough to move the needle on Bitcoin’s price. Previously, Bitcoin’s price was much more volatile and easily influenced by individual interest. But the recent growth of the coin has come from the institutional interest which will not be affected as much by sentiment.
Halving interest on the up
Another interesting Bitcoin search metric is also surrounding the big upcoming reward mining halving set for May of this year. The halving will see the circulating supply of Bitcoin cut in half and this is being pegged as another reason for big price action.
It thus makes sense that the Google searches for ‘Bitcoin Halving’ are also on the rise, having begun spiking in around November of last year. Bitcoin’s price is even being linked to the upcoming halving, and this, in turn, could be getting boosted further by fervent interest.
Are enterprises not worried about sentiment?
The only concern is that if Bitcoin’s price is growing on sentiment and interest from individuals Googling the halving and other related words, then the interest is not coming from institutions.
Bitcoin has grown to a place where its price is not being moved by individual and retail interest, instead, the bigger movements are coming from futures contracts and other institutional investment movements.
Thus, the big rally probably won’t be sparked by a bit of interest on Google, but rather when the cryptocurrency gets further legitimized and normalized in the eyes of institutions who slowly leak more money into the industry.