According to the latest data from Google Trends, Bitcoin has significantly dropped to 25th place on Google’s search hot list, with a search heat index of 30, marking a new low since October last year. CoinDesk reported yesterday (4th) that this phenomenon indicates a notable lack of interest from retail investors in the market, as well as diminished market excitement and speculative desire.
(Background: MicroStrategy increases Bitcoin holdings by “issuing $250 million in preferred stock,” Michael Saylor: buying BTC is an explosive trend)
Bitcoin reached an all-time high in May ($111,963), but its upward momentum has stalled, with a minimum pullback to $103,078 on May 31. As of the time of writing, Bitcoin is currently reported at $104,785. It remains unclear whether it is consolidating to accumulate momentum for a breakout or if it has reached a short-term peak, with no clear direction at present.
Bitcoin Google Search Interest Declines
Meanwhile, the latest data from Google Trends shows that Bitcoin has significantly fallen to 25th place on the Google search hot list, with a search heat index of 30, marking a new low since October last year.
Regarding the waning interest in Bitcoin, CoinDesk reported yesterday (4th) that this phenomenon indicates a notable lack of interest from retail investors in the market, as well as diminished market excitement and speculative desire. The report further analyzes that this lackluster interest corresponds with Bitcoin’s historically low volatility performance. Currently, the Bitcoin volatility index (DVOL) is just slightly above 40, one of the lowest levels in the past two years, second only to the mid-2023 trough. Deribit’s implied volatility indicator also further highlights the stagnant market situation: the IV ranking (current implied volatility compared to the past year) stands at only 2.3, close to this year’s low; the IV percentile is as low as 0.3, indicating that the implied volatility has been below this level for less than 1% of the past 12 months.
Sygnum Bank: Bitcoin to Gain New Momentum Due to Turmoil in U.S. Treasury Market and Weakening Dollar
Despite the current decline in discussions surrounding Bitcoin, Sygnum Bank remains optimistic about Bitcoin’s future trajectory in its latest market analysis report. The report states:
Bitcoin’s status as a safe-haven asset is gaining new momentum due to turmoil in the U.S. Treasury market and the weakening dollar. Over the past 18 months, Bitcoin’s liquid supply has decreased by approximately 30%, which may lay the foundation for upward price volatility in the coming months.
Specifically, Sygnum Bank’s positive outlook on Bitcoin includes:
Market Dynamics and Liquidity Pressure: Analysts state, “The liquid supply of Bitcoin is severely constrained, while demand trends continue to improve, creating conditions for upward price pressure.” Increased inflows into exchange-traded funds (ETFs) and the openness of various governments to Bitcoin reserves have propelled a “demand shock” scenario, where too many buyers chase scarce cryptocurrencies.
Strengthening Safe-Haven Asset Status: The decline in U.S. Treasury prices, coupled with soaring federal debt, has prompted investors to turn to gold and Bitcoin. Bitcoin’s resilience in fiscal headwinds demonstrates its emergence as the preferred safe-haven asset, further solidified by the weakening dollar and turmoil in the Treasury market.
Geopolitical Demand Catalyst: The report also highlights the growth of new demand driven by geopolitical factors. For example, three U.S. states have passed Bitcoin reserve legislation, and a leading political party in Pakistan and the UK is considering official Bitcoin reserve allocations.
