- Bitcoin witnessed a major drop in search volume on Google.
- Miners sold their holdings in droves as the hashrate dropped significantly.
Recent data pointed to a significant drop in Bitcoins [BTC] popularity, especially evidenced by the declining number of BTC-related Google searches in recent years. Compared to Google artificial intelligence (AI) searches, the volume of BTC searches is remarkably low.
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Is the BTC hype abating?
While searches for BTC have risen incrementally since the start of the year, search interest has not quite lived up to the 2021-2022 hype.
In terms of social dominance, Bitcoin’s presence on the social front has dropped from 30.74% to 16.8% in recent weeks. In addition, sentiment around Bitcoin has continued to fall since last month. This indicated that the number of negative comments about Bitcoin exceeded the number of positive ones at the time of writing.
Source: Sentiment
Aside from the social front, miners were also not optimistic about holding their Bitcoin. According to Glassnode data, after crossing the psychologically significant level of $30,000 in the spot price, Bitcoin Miners have been continuously sending significant amounts of BTC to exchanges. At the time of writing, miners transferred a total of $105 million to exchanges, marking the second largest USD transfer on record.
Source: glasnode
Miners say goodbye to companies
The continued sale of BTC by miners is putting downward pressure on Bitcoin’s price. The influx of BTC into exchanges increases the supply available for sale, potentially increasing demand and driving the price down.
In addition, the significant transfers of BTC by miners to exchanges may contribute to increased volatility in the cryptocurrency market. Large sell orders can lead to sudden price swings and create uncertainty for traders and investors. The lack of confidence of miners may also further increase negative sentiment around BTC on a social level.
In addition, the hashrate for miners was observed to decrease significantly as well. A lower hash rate means a reduced need for computational power when validating and adding transactions to the Bitcoin blockchain. This reduction in computing requirements results in lower energy and raw material costs for miners, potentially increasing their revenue.
Source: glasnode
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At the time of writing, Bitcoin was trading at USD 30,400. The price has increased significantly in recent weeks, along with the speed, indicating an increase in transaction activity for the king coin. However, during this period, the number of holders of BTC has decreased slightly.
Source: Sentiment