Consistent with Bitcoin’s lack of massive price action, the number of Google searches for the asset has fallen to its lowest level since late 2020.
Separately, the popular Bitcoin Fear and Greed Index has settled in “fear” territory despite BTC’s two-day recovery after collapsing below $40,000.
Lack of retail interest
CryptoPotato yesterday reported the recent spike in whale activity against the primary cryptocurrency. However, it appears that demand from retail investors has waned in recent months, at least according to data from Google Trends.
The number of searches on the world’s largest search engine typically reflects the behavior of smaller investors, who usually appear in the midst of the biggest bull market. This was the case in late 2017 when BTC surged to its then ATH at around $20,000.
As the asset entered a year-long bear market, searches disappeared. Something similar happened during last year’s price increases, as BTC saw a rupture in April and later in November, eventually peaking at $69,000.
However, the cryptocurrency started retracing again, resulting in a nearly 50% decline in about half a year. Somewhat awaited, Google Trends data now shows that “Bitcoin” searches have fallen sharply, plunging to lows last seen in December 2020.
Bitcoin searches on Google 5 years ago. Source: Google Trends
Fear has returned among Bitcoin investors
The Bitcoin Fear and Greed Index estimates the overall sentiment within the cryptocurrency community by examining various factors such as price volatility, polls, BTC dominance, trading volume, social media interactions, etc.
Final scores are displayed on a 0-100 basis, with 0 representing extreme fear and 100 representing extreme greed.
Back in late March, as BTC marched toward $50,000, the metric went into extreme greed for the first time since November. However, as BTC started to cool down and even fell below $40,000 in April, the index (yesterday) dropped on extreme fear.
Today it shows only fear as Bitcoin managed to regain Monday’s retracement and even touched the January 2021 ATH of $42,000.
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