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Here’s One Data Point That Suggests Bitcoin (BTC) Has Bottomed Out

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Here is an interesting one. Take a look at the price of bitcoin as illustrated on the bitcoin price chart (taken from CoinMarketCap) below.

BTC Chart

BTC Chart

The chart shows the action that has been covered across so many of the major news media outlets over the last six weeks or so, with bitcoin sliding from highs at more than $20,000 a piece to current levels in and around $8000.

The 60% decline is one that has come as painful for many longer-term holders but the pain that said holders feel is no doubt insignificant as compares to that felt by anybody that picked up an exposure in or around mid December pricing and have subsequently ridden price down throughout the first half of the first quarter of this year.

Anyway, now take a look at the second chart, this one taken from Google’s Trends platform.

Google Trends Bitcoin

Google Trends Bitcoin

The chart illustrates interest over time in bitcoin, with the metric based on the frequency and volume with which people search for it through Google’s search engine. Official numbers suggest that around 60% of search traffic goes through Google but, in reality, it’s probably considerably higher than that.

Anyway, whatever the numbers, interest over time was at 12 (out of a possible 100) back during the first week of October. By the week of December 17, this had risen to 100 (so, representative of peak interest). That suggests an increase in the wider market attention of around 700% across what is essentially a fraction of bitcoin’s lifespan.

Almost immediately subsequent to this interest peaking, however, search volume fell off a cliff and currently sits at around 49, meaning we have seen a decline of around 100% from December.

So why is any of this important?

Well, it’s reasonable to assume that the uptick in attention and interest during the final quarter of last year is comprised primarily of mainstream attention as opposed to those already familiar with the space increasing the amount of times they type bitcoin and its related terms into Google.

In turn, it’s equally reasonable to assume that the subsequent downturn in interest during the first couple of months of this year is the removal of this same portion of global search volume from the picture.

So, taking these two assumptions into consideration, we can make a further assumption based on price. Specifically, that the portion of the inflowing volume that resulted in the bitcoin price running up to $20,000 and above derived primarily from the increase in mainstream speculation (as opposed to existing holders adding to their positions), at least for the main part.

What does this all mean?

We think that, at current prices, and taking into consideration the recent slight upturn we have seen in the markets, the portion of capital that flowed into bitcoin and pushed price up has now flowed out of the market, meaning balance is restored in the sense that the vast majority of the capital that now supports price derives from long-term holders as opposed to fly-by-night speculators.

In turn, we think that this level represents the level at which it’s perfectly reasonable to assume price should start turning around.

It’s unlikely that we’re going to see a run towards $20,000 short-term since that would mean the volume that entered (and then exited again) entering the market once more. However, within a six-month period, say, the traction that pushed bitcoin towards current levels during the first 6 to 8 months of 2017 could easily push BTC towards $15,000 plus between now and September 2018.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


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Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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