One of the original analysts of bitcoin, DataTrek Research’s Nicholas Colas is now arguing that Google search data indicates interest in bitcoin is acutely cooling off. Colas remarked during a recent interview that current searches for “bitcoin” are equivalent to where they were before December 2017.
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Interest Cooling in Bitcoin for Now?
Colas, the co-founder of DataTrek Research, spends a lot of time looking at different data points pertaining to bitcoin use. And, in his latest analysis, it’s become clear that Google searches for “bitcoin” are way down from where they were just a month ago.
“Going into December, [the Google searches] skyrocket. You saw that correlate to the total increased number of wallet growth,” Colas noted in a recent conversation with CNBC.
But, as the cryptoverse has come across a bearish short-term downtrend, interest has apparently started to cool off. So much, in fact, that “bitcoin” searches are down approximately 75 percent from their position just a few weeks ago, per Colas. And he doesn’t see any indicators at present suggesting a resurgence of interest is nigh:
“It’s very much a case where you have to hold interest in new bitcoin owners to get bitcoin to go up. Right now [Google] is telling me there’s not really that next leg up in bitcoin because there’s not that leg up in interest that leads to wallet growth that leads to price appreciation.”
Colas: Bitcoin a “Gateway Drug”
In the same interview, Colas called bitcoin a “gateway drug to all cryptos,” going on to say that “some of the movement in ethereum, which has traded much better [recently], is just money getting pulled out of bitcoin.”
And while that dynamic won’t come as news to those who are seasoned traders in the cryptocurrency space, it is a trend to watch as newcomers enter the ecosystem in 2018.
These newcomers will inevitably turn their attention outward from bitcoin as they explore the hundreds of other cryptocurrencies that are coming into fruition right now.
What do you think? Do you think an acute withdrawal of mainstream interest has led to the acute bitcoin price fall? Let us know what you think in the comments below.
Images via linkmedia360, CNN