The Silicon Valley venture capital firm Andreessen Horowitz (a16z) released a report on Tuesday covering the current state of crypto adoption. It highlights Ethereum as the leading blockchain network for developer support but contains very little mention of Bitcoin’s growth. The Potential of Web 3 The VC firm broke boiled down its report into five key takeaways about the current state of crypto. It began by suggesting that the industry is in the middle of its fourth ‘price innovation’ cycle.…
Bitcoin performance was slow this year because, even though its price surged by about two times since the beginning of the year, it could end up declining by 50% from its all-year high. Nonetheless, according to Google Trends this year, Bitcoin overtook Donald Trump, Visa, Paypal, and Libra.
Eric Wall, a crypto researcher, addressed the issue by saying that the popularity of the keyword Bitcoin on Google Trends attained its one-year high between the 23rd and 29th of June. The feet got achieved when the Bitcoin’s price began demonstrating a parabolic rally to over $ 12k following its stay around the $ 5k a month before in May.
Bitcoin’s price tends to move according to the cyclical trends, and it gets influenced by sentiment, just assets like gold. Therefore, immediately Bitcoin starts seeing an extended rally; it frequently experiences an upsurge by 100 % and 300 % within some months. For instance, Bitcoin’s price surged by 282 % from $ 3630 to $ 13 900 between 1st January and 26th June 2019.
What Google Trends Reveal about Bitcoin
Google Trends data shows how Bitcoin’s price dictates the mainstream attention. The increase in Bitcoin’s price never gets influenced by high search engines’ interest, but the price affects how people search the keyword.
According to the data, when Bitcoin’s price is at its peak, the mainstream’s attention is likewise at its peak regarding the digital coin and the crypto market. Therefore, this promotes fear of missing out (FOMO) in the market.
Additionally, the data shows that despite the last part of the year being difficult for Bitcoin due to the significant 50% decline since June, it attained highs when the crypto popularity became unprecedented for an emerging asset. In 2019, the expected platforms and products such as Bakkt emerged in the crypto market. Additionally, the added services were related to cryptos by financial conglomerates like the CME group. Nevertheless, it could not develop a vital event to move Bitcoin prices and market sentiment.
Next year, Bitcoin block reward halving is getting anticipated to happen, and it cuts new issuance of the cryptocurrency by half. The events that influence the Bitcoin supply will significantly impact a currency that depends on its scarcity.