- Bitcoin saw a sharp drop in search volume on Google.
- Miners sold their holdings en masse as the hash rate dropped significantly.
Recent data points to a significant decline in Bitcoins [BTC] Popularity, which is particularly evident from the declining number of BTC-related Google searches in recent years. Compared to Google artificial intelligence (AI) searches, the volume of BTC searches is remarkably low.
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Is the BTC hype dying down?
While searches for BTC have incrementally increased since the beginning of the year, search interest hasn’t quite lived up to the 2021-2022 hype.
In terms of social dominance, Bitcoin’s presence on the social front has fallen from 30.74% to 16.8% over the past few weeks. Additionally, sentiment surrounding Bitcoin has continued to plummet since last month. This indicated that at press time, the number of negative comments about Bitcoin outweighed the number of positive ones.
Aside from the social front, miners weren’t optimistic about keeping their bitcoins either. According to data from glassnode, after surpassing the psychologically significant $30,000 spot price mark, bitcoin miners have continuously sent significant amounts of BTC to exchanges. At press time, miners transferred a total of $105 million to exchanges, making it the second largest transfer on record in US dollars.
Miners say goodbye to companies
The continuous sale of BTC by miners is putting downward pressure on the price of Bitcoin. The influx of BTC to exchanges increases the supply for sale, potentially exceeding demand and causing the price to drop.
Additionally, miners’ significant transfers of BTC to exchanges may contribute to increased volatility in the cryptocurrency market. Large sell orders can cause sudden price swings and create uncertainty for traders and investors. The lack of miner confidence may also further fuel negative sentiment towards BTC on the social front.
In addition, it was observed that the hash rate for miners also decreased significantly. A lower hash rate means less processing power is required to validate and add transactions to the Bitcoin blockchain. This reduction in computational requirements translates into reduced energy and resource costs for miners, potentially increasing their revenue generation.
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At press time, Bitcoin was trading at $30,400. Its price has increased significantly along with its speed over the past few weeks, indicating an increase in transaction activity for the king coin. However, the number of BTC holders fell slightly during this period.
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