Online crypto curiosity has rebounded from an all-time high in 2021 to late 2020 amid waning bitcoin sentiment. According to Google Trends dataSearches for “crypto” currently score 17, which is a significant drop from the reference point of 100 recorded in May 2021.
Notably, the two largest cryptocurrencies, Bitcoin and Ethereum, followed a similar path while market sentiment remained neutral over the past month.
Low market sentiment leads to lower interest in cryptocurrency
During a bull market, individual interest in digital assets peaked in May 2021. But this has since changed due to downside events which made some people and investors lose interest and confidence in the blockchain industry.
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he was there Continuous decrease In interest in searches for cryptocurrency-related terms since May 2022, after the collapse of the Terra ecosystem. However, there was a slight spike in interest in early November 2022 during the FTX saga. But the latest drop in interest occurred with bitcoin consolidating around $28,000 over the past 10 weeks.
at recent days interviewGalaxy Digital CEO Mike Novogratz called this Bitcoin price behavior Lackadaisical, adding that it was due to a lack of institutional interest.
on June 4th tweetJay Turner, aka Coin Bureau Guy, pointed out that the interest drop coincides with lower trading volumes on cryptocurrency exchanges. Jay said trading volume on the stock exchange reached a 32-month low in May.
Crypto Fear & Greed indicator Certain These assumptions as market sentiment has been at 53 (neutral) for about a month. However, the sharp decline in searches for cryptocurrency was not industry-wide. Some areas of the industry still maintain relatively high search volumes.
Search volumes for “decentralized finance” and “DeFi” increased in 2023, while searches for “memecoin” peaked in early May. The data shows that Nigeria has the highest scores in cryptocurrency-related searches, while the lowest scores come from South American countries.
But on the contrary, the search trends for AI keep increasing as many believe that AI is the latest technology trend.
Institutional interest is still high but has paused due to crypto winter
Meanwhile, a recent survey showed that while institutional investors are very interested in cryptocurrency exchange traded funds (ETFs), buying has declined. Even though the market is down more than 60% from its all-time high, institutional interest in ETFs remains high.
On April 3, Brown Brothers Harriman (BBH) released the 2023 album Global ETF Investor Survey It surveyed 325 institutional investors, financial advisors and fund managers in the US, UK, Europe and China.
According to the survey, nearly three-quarters of institutional investors claimed to be very or very interested in ETFs. However, the bear market has tempered their hunger for these investments.
Only a quarter of them said they plan to increase their portfolio in crypto-ETFs within the next 12 months. This represents a 6% decrease from institutional interest in ETFs registered in 2022.
Featured image from Pixabay and chart from TradingView.com