Google Searches For BTC Sink To 6-Month Low: Analysis

Google searches for BTC sink to a 6-month low with both the interest and short-term holders number suggesting the potential for a capitalisation event so let’s read more in today’s latest Bitcoin news.

The search data shows global interest in BTC sunk due to the volatile performance in the past five months and the tool is quite popular and used to gauge general interest in trending topics and in respect of the search term “bitcoin” it shows a value of 30 for the week ending on March 19, 2020. This marks the lowest level since December 2021 and represents a huge drop from mid-May when the interest peaked at 100. over the past three months, Bitcoin was trading between $33,000 and $45,7500 which seems to have driven away investor interest.

The searches tend to rise during periods of volatility with potential investors looking for information on bullish or bearish marekt activity. During the May 2021 peak interest score of 100 occurred when Musk said BTC PoW mining is damaging to the environment which triggered a 50% drop in the BTC price in the past 10 days. The Google searches for BTC took a sharp drop by June 2021 and halved to 53 whcih set off even more declines in the searches and despite posting a new high of $69,000, the interest failed to recapture the same level seen in May.

This week where BTC posted a new high had an interest score of 39. since May’s downturn, the highest interest score occurred at the end of January with a value of 52 which is far from May’s peak of 100. the above suggests that the short-term hit and run investors are diminishing but what is happening to the short-term holders with open positions. The on-chain data from Glassnode shows the percentage of the Short-term holders that accumulated in the last 155-days which are holding losses increasingly. The current portion of STH supply in loss is 82% and the downtrend of profitable SHTs adds to the sell-side pressure:

“STH supply is currently near all-time-lows which is constructive for prices. However, 82% of these coins (2.51M BTC) are currently held at a loss, and are in turn the most likely source of sell-side pressure.”

Glassnode said the amount of coin supply held by STHs is on the fall as well which occurs when the coin supply remains dormant and crosses the 155-day threshold to become classified as the long-term holder supply. The STH supply is also remaining low and it is associated with bear markets as buyers are sending coins to cold storage for the long term. The broader macro risks dampened the short-term accumulation behavior with the data showing their potential for more drops in the BTC price to come.