Interest in Bitcoin reached its climax leading to its own peak of $ 20,000 at mid-December of last year. Interest has peaked, not only in investment circles, but also in the mainstream as Bitcoin has become the buzzword on everyone's lips.
Bitcoin supported this adoption by hosting millions of users in the cryptocurrency community. numbers alone. However, in this fast paced ecosystem, Bitcoin is not enough to hold the attention of this very diverse community. While this is the perfect piece to attract people to cryptocurrencies, once they are installed and installed, it's time to look for a multitude of other pieces that best suit their needs or beliefs .
The Great Growth Draw
The biggest draw of Bitcoin was the incredible returns that it offered while it was growing by 2,000% in 12 month. This phenomenal growth continued to increase interest in the currency, which further stimulated growth in this massive hype cycle. It has been correlated before that Google searches for Bitcoin are closely related to its growth – a phenomenon known as "Satoshi Cycle". Ahead of December's high, Satoshi's cycle was in full effect as Google's trends showed some interesting numbers.
Nicholas Colas, a pioneering Bitcoin analyst in the traditional investment world, took this correlation very seriously. states that he plays a big part in his predictions. "In December, [searches] soared," Colas told CNBC's Fast Money. He added that the total number of Google Bitcoin searches in the world tripled that month:
"You have seen that correlated with the total increase in the number of portfolios, which has doubled in December Bitcoin rallied. "
However, taking this metric into consideration, one could argue that the new wave of adopters Now begins to disperse and find its way to others As people educate and learn more about the options offered by the cryptographic community, they begin to diversify and choose their own pieces. favorite currency in which to invest. This is often losing Bitcoin money and in Altcoins.
Bitcoin, being the dominant, most adopted and most important piece of the scene, will continue to be the community's "entry drug", but it is more difficult to find it.
These sentiments are expressed by Colas, who adds:
"Bitcoin is considered the drug of passage to all cryptos and it acted exactly that way. this moment [the Google search data] tells me that there is not really this next step in Bitcoin because there is no interest that leads to the growth of the wallet which leads to the appreciation of prices. "
Colas attempts to justify this position by explaining how Ethereum was the only piece that performed relatively well at the highest echelons of CoinMarket Cape:
"Part from the Ethereum movement, which exchanged much better [in January] it's just money that is removed from Bitcoin. "
However, it is important to note that the Price fluctuations and Bitcoin movements are still strongly related to all other parts. The saying that "the tide moves all boats" is still true in the cryptocurrency market with Bitcoin being essentially the tide. When Bitcoin is up, most parts follow, and when it's down, the same red graphs seem to follow everywhere.