Interest in Bitcoin has been hovering at historic lows since June 27, according to data from Google Trends. In a screenshot divided Organic searches related to “bitcoin” have declined over the past six months, according to a Twitter user.
Google Trends is a free tool that tracks how people search for specific terms or phrases on Google, the world’s largest search engine. Depending on the number of search terms, interest in a specific topic or asset can be determined in real time. Few users are currently searching for the term “Bitcoin”.
Interest in bitcoin is rapidly declining
Notably, BTC and crypto prices have steadily recovered after the bears erased gains last year. To illustrate, BTC is up about 87% on writing and trending at around 2023 highs. On the other hand, organic searches related to the world’s most valuable cryptocurrency are at a multi-year low, declining sharply in the first half of 2023.
Data from Google Trends shows that interest in searches related to Bitcoin is below 2018 levels and could potentially fall further given how quickly the value has been in free fall in the first half of the year. This “disinterest” in Bitcoin seemed to have widened from the second half of 2022.
In the first half of last year, searches increased temporarily before declining again. Still, Bitcoin search results at this point were lower than they were in 2021, when they hit record highs, according to Google Trends.
Based on this development, there appears to be a direct correlation between sentiment and prices, as revealed by Google Trends data on Bitcoin. BTC prices peaked above $69,000 in November 2021 after rising steadily since late 2019.
Notably, prices more than doubled as they dipped below $10,000, breaking the December 2017 peak of around $20,000 and hitting new all-time highs of around $70,000 in the fourth quarter of 2021. As prices soared, Google Trends data also showed searches related to Bitcoin Rose. In the past 19 months, the opposite has been observed as prices tumbled from all-time highs and fell over 70% to lows under $16,000 in November 2022.
BTC price on the daily chart | Source: BTCUSDT on Binance, TradingView
What could be the cause?
From the current BTC price action, it is clear that there is a divergence between the Google Trends data on Bitcoin and the prices. As prices surge and shake off the bears of Q4 2022 and the first half of Q1 2023, interest in Bitcoin is falling.
This observation can be attributed to several factors, including increasing regulatory scrutiny of Bitcoin and cryptocurrencies in the United States and around the world.
Related Reading: BTC Continues Its Uptrend As Fidelity Plans To File A Bitcoin Spot ETF Application
Although the U.S. Securities and Exchange Commission (SEC) has clarified that Bitcoin is a commodity, the regulator’s crackdown on popular exchanges, including Coinbase and Binance, may have affected sentiment and hurt user interest.
Featured image by Canva, chart by TradingView
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