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Google searches for Bitcoin have increased significantly since t
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Date:2024-05-22 19:58:03 Channel:Crypto Read:
Since the Bitcoin halving was searched on Google, this event seems to have brought huge fluctuations to the entire cryptocurrency market. People are looking forward to what changes the halving will bring, but there are also voices that perhaps everything will remain the same. In this article, we will delve into the impact of the Bitcoin halving event, analyze market trends, and explore possible scenarios. Let us unveil the mystery of Bitcoin halving together.
Will the market soar or remain stable as usual?
As a highly watched event, the Bitcoin halving has also been rising since the surge in Google searches. Investors are speculating on what will happen after the halving, whether it will bring more investment opportunities or just fireworks. In fact, the Bitcoin halving is not an event that happens overnight, it contains more connotations and influences.
Expert opinions and market interpretation
Experts from all walks of life have expressed their views on the Bitcoin halving event. Some experts believe that after the halving, Bitcoin will usher in a new bull market and the market will continue to rise; while other experts are cautious and believe that the market may experience drastic fluctuations and investors need to respond with caution. In this context, investors need to look at the market rationally, do a good job of risk control, and avoid blindly following the trend.
On the other hand, from the perspective of market trends, the price fluctuations before and after the Bitcoin halving are dazzling. Some investors took the lead in making arrangements before the halving and obtained rich returns; while some investors were trapped when the market plummeted after the halving and suffered huge losses. This market uncertainty requires investors to make more cautious decisions and take good risk prevention measures.
Investment strategy and risk control
Conclusion
The Bitcoin halving event has undoubtedly injected new vitality and variables into the entire cryptocurrency market. Investors' speculation and expectations about market trends continue to heat up, and the market has also become volatile. In this context, investors need to remain calm and rational, make good investment plans, and avoid blindly following the trend. Whether the market is soaring or stable, only a sound investment strategy and risk control can help you stay invincible in the market. I hope you will overcome all obstacles and move forward courageously in the era of Bitcoin halving!
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Google searches for Bitcoin halving have increased significantly this year. Maybe nothing will happen after the halving? According to multiple estimates of mining factors, approximately 35
Bitcoin will undergo a new round of block reward halving. As a result, the original 12.5 BTC reward for mining each Bitcoin block will be reduced to 6.25 BTC
, and then its inflation rate will be halved. Some investors believe this halving will drive Bitcoin prices higher, as a reduction in supply tends to spur price increases.
Now, more and more people are interested in this halving (also Bitcoin’s third reward halving). According to Google Trends
Data from (Google Trends) shows that searches for "Bitcoin halving" and "halving" have increased significantly in recent months.
The chart below shows that over the past 12 months, global search interest in "Bitcoin halving" has risen from 19 in April last year to 78 at the beginning of this month, and it peaked at 100 around mid-March not long ago.
Google's Trends report analyzes people's interest in searching for a certain keyword by scoring search volume on a scale of 0-100 based on the peak point for a given time and region. For example, looking at data for the United States over the past year, at 3
In mid-month, the search volume for "Bitcoin halving" reached 100 points, the highest record in the past year. In early April 2020, the search volume of this keyword was 78 points, a 22% decrease from the highest record day.
This growing trend has been evident since December, when search volume was 22, before rebounding to 85 in mid-February.
This surge in keyword searches coincides with Bitcoin’s rebound from a low of $6,400 in December to $10,500 in mid-February.
The correlation with the US dollar indicates that this round of halving hype is likely to have played a catalytic role. Of course, this relationship broke down after that. Affected by the global new crown pneumonia, major markets panicked one after another, and the price of Bitcoin also flashed to 3800 in March.
Dollar.
However, the data is getting better and better.
Preliminary data from Google Trends shows that search volume for this keyword during the week of April 5-11 is expected to hit 12 by the end of the week.
A new high in months. The detailed data in the United States is more interesting. Google predicts that the number of searches for "Bitcoin halving" by Americans this week will be double that of last week.
Chart: Google Trends
Since the week isn't over yet, it's important to note that the chart above is just a forecast, as indicated by the dotted line on the right end of the chart.
The increase in search volume for this keyword seems to be related to the recent frequent news reports about the upcoming halving.
To give two examples, Galaxy Digital’s Mike Novogratz and Morgan Creek Digital’s Mark Yusko
Well-known cryptocurrency investors such as CNBC have mentioned the term "halving" in recent interviews with media such as CNBC and Bloomberg, which may also be the factor that stimulates everyone's attention to this event.
Let me tell you another interesting thing. How powerful is this wave of publicity for Bitcoin halving? I am nearly 90 years old.
My 20-year-old grandfather called me and asked me about the halving - I kid you not, he asked me what the halving was and what impact it would have on the price of Bitcoin. Later, I asked him how the old man knew about this matter. He said that it was from the news, especially
Some articles from CNBC.
The reason why Bitcoin halving has aroused heated discussion is also related to the so-called "halving market" - that is, the impact of halving on the price of Bitcoin.
The impact of halving on Bitcoin price
The most common claim is that the Bitcoin halving will drive the price up: PlanB, an anonymous quantitative analyst in the cryptocurrency field, on March 2019
Yu shared a chart that pointed out that the scarcity of Bitcoin is related to its value (for scarcity, he used the most intuitive ratio of existing supply to annual inflation rate to show it, which is the so-called S2F model, that is, stock-
flow ratio).
In fact, PlanB found that, based on his logarithmic regression analysis, the scarier a Bitcoin is, the more exponentially its value increases. For example, the model predicts that after Bitcoin’s halving, the fair value of its network will rise to 1 trillion -
2 trillion US dollars, that is, the price of 1 BTC reaches 55,000-110,000 US dollars.
Although many people have begun to believe in PlanB's model, some people think that the statement that "prices will rise when production decreases" is not very reliable.
Well-known cryptocurrency analyst and economist Alex Krüger said on October 2019
Yue once explained: “In the long term, there is a huge loophole in the concept of ‘when miner block rewards decrease, the price of Bitcoin will increase’.”
He attributes his thinking to a simple fact: miners also need to eat. In other words, miners also have to sell coins to pay electricity bills to maintain operations.
However, some people think that this is just a gimmick and nothing will happen in the end.
Seattle-based hedge fund Strix Leviathan explained in a recent report that there is currently no conclusive evidence that the halving event will definitely drive up the price of Bitcoin.
He said: “Bitcoin’s supply schedule is a major selling point for cryptocurrency evangelists…Market participants have been anticipating the halving since 2009 when there was only one player in the industry. However, Strix
Leviathan’s previous research has shown that the impact of the halving event is not that clear when looking at broader market sentiment. "
Regardless of the final outcome, after the halving occurs, Bitcoin’s inflation rate will be lower than the US dollar’s target inflation rate of 2%.
The reason why the Bitcoin halving has attracted much attention is that it is directly related to the supply and market price of Bitcoin. According to historical data and expert research, the Bitcoin halving usually leads to a decrease in supply, which drives up prices. This increase in scarcity often triggers investors' enthusiasm, which in turn drives the market to soar. However, there is also a view that the market's response may be delayed, and the halving does not necessarily bring about obvious market changes immediately.
For the Bitcoin halving event, investors need to formulate reasonable investment strategies and risk control measures. First, investors should reasonably allocate assets according to their own risk preferences and investment goals, and avoid over-investing in a certain asset. Secondly, investors need to pay close attention to market dynamics, adjust their investment portfolios in a timely manner, and grasp the pulse of the market. Finally, investors should maintain rational thinking, not be swayed by market sentiment, and avoid blindly following the trend and impulsive trading.
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