Bitcoin is in an uptrend and will likely cross the all-important liquidation line at $72,000. At the spot rate, the coin is up around 25% from the May lows and could rebound, even surpassing the all-time highs of $73,800.
Retail Interest in Bitcoin Diminishes Even as Prices Near All-Time Highs
Even though Bitcoin is posting impressive highs, Mike Alfred, a “value investor” and active crypto commentator, has identified a surprising disconnect: organic search engine traffic on Google is declining. Apart from the increase in searches between the fourth quarter of 2023 and the beginning of January 2024, the trend has been southwards since then.
![Bitcoin Price vs. Research | Source: @mikealfred via](https://www.newsbtc.com/wp-content/uploads/2024/06/GPWIqGTbQAE9gMj.png?resize=706%2C423)
The increase in organic searches on Google during this period is mainly due to the fact that the United States Securities and Exchange Commission (SEC) is preparing to approve the launch of spot Bitcoin exchange-traded funds (ETFs).
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The excitement over this milestone and the wait of several years not only saw BTC prices rise, but also improved sentiment. Subsequently, more people, mostly new to the industry, were eager to learn more about the digital asset.
The recovery in the fourth quarter of 2023 did not last long and continues to push rates down. Bitcoin fell in February before rebounding sharply, surpassing $70,000 and posting new all-time highs at $73,800. Even though prices fell weeks later, falling as low as $56,500 in May, bulls are preparing to accept higher prices.
However, unlike the interest seen between Q4 2023 and early January 2024, organic searches, as mentioned, are down unusually. Alfred argues that this divergence points to an “institutionally driven” and still “early” bull market.
In the past, and before the approval of spot Bitcoin ETFs, retailers played an important role in determining prices and sentiment. However, institutions are playing with the products available in the United States.
An observer Remarks that these market players tend to demonstrate “engaged ownership,” thereby eliminating the need for constant online searches.
Encouragingly, the absence of retailers in this cycle – which extends from search to organic searches – means a drop in speculative buying. Therefore, as it stands, the Bitcoin market is more liquid and stable than before.
Increased awareness and affordability, a reason?
There are several explanations for the decline in organic searches on Google and other search engines. While institutions may be behind this rally, the decline is because Bitcoin's general awareness has grown rapidly over the years.
It is worth noting that the availability of spot Bitcoin ETFs and the wide media coverage have increased the recognition of the coin.
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Besides that, there is another aspect of affordability. With the price hovering around $71,200, buying an entire Bitcoin is out of reach for many. In turn, this dampens the enthusiasm of retail investors, leading them to consider cheaper altcoins like Dogecoin or Solana.
Featured image from Shutterstock, chart from TradingView