The Google Trends data suggests that this year's Bitcoin price growth is due to the entry of institutional investors to the market, and not retail investors who buy cryptocurrency in order to sell more expensive.
Data is presented in the form of an index from 0 to 100, showing the number of searches for the word "bitcoin" . Although the exact number of such requests is unknown, it is obvious that interest in Bitcoin has dropped significantly compared with 2017.
When the most popular cryptocurrency reached a maximum of about $ 20,000 in December 2017, the index for Bitcoin was at around 100, but over the past year it dropped to five, after which it began to grow again. Now its value is 12.
Note that the CryptoCompare data shows that in December last year, the price of bitcoin reached a minimum of $ 3,200. Since that time, it began to grow and has tripled in three months.
Bitcoin whales are buying cryptocurrency
It is believed that many retail investors have lost interest in cryptocurrencies due to the falling market, and those who invested money in Bitcoin during its peak are still in the red. The increase in the price of the main cryptocurrency in 2017 was partially caused by the Lost Profit Syndrome (FOMO), as the cost increased significantly in a short period of time, and investors were afraid to miss the moment.
The growth of Bitcoin, which is observed this year, was caused not by individual investors, but by institutional ones. A report from the research firm Diar showed that in the past nine months, bitcoin whales have accumulated 450,000 BTC. And in February of this year it became known that the same whales have been buying large sums of cryptocurrency since the beginning of the year.
As we have already written , Grayscale is part of Barry Silbert’s holding company Digital Currency Group. In her blog there was a message that Ethereum-trust is running . It is trading under the ticker ETHE. This trust will allow to invest in ETH even to those who do not own a cryptocurrency.
Publication date 24.06.2019
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