The Low-Key Indicator That The Bitcoin Bubble May Have Burst
Bitcoin, the poster child for cryptocurrency, is in the throes of a bear market that began shortly after the asset hit a price of just over $19,000 in December. Judging by Alphabet Inc (NASDAQ: GOOGL)’s Google search trends, that’s a state of being bitcoin isn’t likely to break out of any time soon.
Along with the coin’s value, Google searches for bitcoin have plummeted in 2018. Has the bubble really burst this time?
FOMO Fades
Fear of missing out — FOMO, as it’s colloquially referred to — was often noted last fall as a major wind beneath bitcoin’s wings. With the crypto conversation migrating from trading desks to dinner tables, everyday folks armed with only a passing understanding of the currency or the technology that underpins it poured money into the asset.
Awash with demand, bitcoin did what any good commodity would and became more valuable. Since then, whether from profit-taking or panic selling, the price has descended more than 100 percent from the highs. And there seems to be little hope recreational buyers will step in and provide support.
A look at how the Google search trends chart correlates with a chart of bitcoin’s value over the last year implies that the fair-weather investors who helped propel it into the stratosphere may have moved on. Some could have migrated to other digital currencies, while others might have rotated into the stock market: while bitcoin’s value was cut in half, the S&P 500 is only down about 4 percent over the same period.
Is This The End?
Recent plummet notwithstanding, no one knows bitcoin’s future.
After all, the introduction of regulatory oversight might actually nudge institutional investors to take interest again. And despite Twitter, Inc (NYSE: TWTR) recently moving to block most crypto ads, CEO Jack Dorsey recently spoke to The Sunday Times of his belief that bitcoin will become the world’s single currency.
According to Coinbase, the bitcoin price stood at $7,875.51 Tuesday afternoon, down 0.46 percent over the last 24 hours.
Related Links:
The Evolution Of Currency: From Gold To Bitcoin
12 Cryptocurrencies To Watch In 2018 (Besides Bitcoin)
See more from Benzinga
Roku CFO: We've Been Successfully Competing With Apple, Amazon For Years
ICYMI: Netflix, Another Crypto Crash, And The New 'Dumb Phone'
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
