Bitcoin, the world's most popular cryptocurrency, is receiving a lot of attention again. But why? Read on to find out! There was a high interest in the asset in January 2020 before the global outbreak of coronavirus. While this level of interest had waned, the world is showing renewed interest in the top cryptocurrency.
Google Reveals Spike in Bitcoin Searches
Google Trends reveals spikes in Bitcoin searches began in late July 2020. Specifically, the search volume interest in the asset was at 49 on July 25, 2020. However, the interest over time spiked to 100 by July 26, 2020. And since then, the high-level interest in the asset has been maintained.
At this point, you may wonder what caused the sudden spike in the number of searches. The reason is not farfetched, given that these dates correspond with major Bitcoin price movements. Coinmarketcap shows that Bitcoin, which has been priced around the $9,000 zone since May 2020, surged for the first time to $10,000 on Jul 26, 2020. And even more remarkably, the asset broke its resistance of $10,500, which it last traded in September 2019.
Accordingly, hitting the $10,000 zone, believed to be a fundamental psychological level, drew a lot of attention to the digital asset. Bitcoin's surge past its ten months high of about $10,500 also caused an uproar in the crypto space. Therefore, Bitcoin's recent price movement can be linked to the sudden interest in the asset.
At the time of writing, Bitcoin is priced at $11,700, a minor retrace from its year high of $12,000. However, there are speculations that its most recent surge will not be the last of its kind. This is because cryptocurrency analysts speculate that the asset may breach its next significant resistance of $13,800. And when that happens, Bitcoin may take down its all-time high of approximately $20,000.
Bitcoin Halving Draws Interest
Aside from the most recent increase in Bitcoin's price, it's just-concluded halving is another reason it has garnered so much interest. Although the asset did not spike significantly after the halving in May 2020, there's still an interest in what it may do a few months.
Past performance shows a significant leap in the asset's price a year after its halving. In 2012 and 2016, the asset was priced around $11 and about $1,000. However, in 2013 and 2017, the asset's price had surged to $400 and $20,000.
Asides from these performances, top members of the cryptocurrency space have high hopes for the asset, and so do their followers. For instance, Morgan Creek's Anthony Pompliano opined that Bitcoin will still hit $400,000 and a market cap of $8 trillion. In Pompliano's opinion, Bitcoin will break all its all-time high steadily. Bitmex's CEO, Authur Hayes, also remarked that Bitcoin's rally would officially kick off once the asset surges past $15,000.
Other Assets Influence Interest in Bitcoin
Gold, silver, and stocks have had a good run for the past few months. Gold's price, for instance, hit a new all-time high in July 2020. Silver also surged in price by 35%. This price surge also occurred in the face of a spike in major stocks. The Dow Jones Industrial Average (DJIA) is an excellent example of a stock dumped significantly in March 2020, given that it declined by 2000 points in a single day.
Coincidentally, when there was a decline in these assets price, Bitcoin also tanked in price. In March, when the pandemic became a global concern, stocks hit their low since the Financial crises of 2008. Likewise, Bitcoin tanked to $3900 amidst fears that it would dump to $1800.