The 2021 Bitcoin Bull Run Excites The Social Media Space Differently
The 2021 Bitcoin bull run has made prices to explode in recent weeks. As expected, crypto has caused some stir on various social media platforms. Google Trends are reacting differently from Twitter. The latest bull run is not entirely represented on Google searches but it has broken multiple critical Twitter metrics.
Based on Twitter’s analytics data, BTC continues to post all-time highs and social media interest in the flagship cryptocurrency also set some new records on multiple critical metrics.
The TIE’s official Twitter handle said in a January 2 tweet that the number of unique Twitter handles that were tweeting about bitcoin has surged to a new all-time high. It surpassed the 64,000 mark that was last recorded during the 2017 peak.
— The TIE (@TheTIEIO) January 3, 2021
Joshua Frank, CEO of The TIE, gave reporters more information indicating that the interest is growing constantly. But, it is not limited to bitcoin. Since The Tie posted the tweet, the number of unique handles posting about bitcoin has surpassed 75,000 for the first time and the total number of tweets has exceeded 140,000 which surpassed 2017’s highs of 135,000.
Additionally, the total number of cryptocurrency tweets has also recorded a new high of almost 255,000 within 24 hours. The 2021 Bitcoin bull run makes up a chunk of these tweets ranging above 223,000 in 24 hours. That scenario increased interest and volume is not limited to Twitter. The search volume for ‘bitcoin’ is also growing in response to the crypto’s price. Furthermore, the “how to buy bitcoin” query is soaring.
Notably, the searches for ‘how to buy Ethereum’ remains a bit low, despite the recent gains from $950 on January 3 to reach above $1,200 on January 8.
Many analysts are convinced that the surge in activity in the crypto market is due to ‘FOMO’ from institutions that, in turn, is now catching up with the retail investors who have joined the speculative mania.
The Relationship Between Retail And Institutional Investors
Bitcoin reached a then-new all-time price on January 6, after trading at $35,727 which built on the surge that kicked off during Q4, 2020. Since then, the crypto has exploded above $41,700 on January 8, 2021, setting new all-time highs almost daily. Back in 2017, bitcoin peaked just under $20,000 and then started its downward trend into the crypto winter of 2018.
These two all-time high periods are different due to the factors that have acted as catalysts for the bull runs. In 2017, the uptrend was catalyzed by the Initial Coin Offering (ICO) frenzy and retail investors who took over the crypto market by storm.
On the other hand, the 2020 bitcoin bull run is powered by growing interest from institutional investors. Major companies are also endorsing the asset which keeps pushing it higher. For example, PayPal started supporting crypto transactions while MicroStrategy decided to change a huge chunk of its cash reserves into Bitcoin.
The 2021 Bitcoin Bull Run Yet To Reflect On Google Trends
Data acquired from the Google Trends site show that back in December 2017, interest in Bitcoin reached the peak popularity of 100 for the week that ended on December 23, 2017. For now, the 2021 bitcoin bull run is yet to reflect on the Google Trends platform.
Analysis of the period between December 2020 and January 2021 showed that the highest value for ‘Bitcoin’ search was at 41. Bitcoin has gained more than 30% so far this year after its over 300% gains of 2020. The growth is majorly attributed to the institutions that are buying more than the miners can supply resulting in illiquidity in the market.
By description, Google Trends is a barometer used to gauge the general interest in trending topics. Mostly, the Google search values surge after a major bull run as retail investors that missed the early surge normally browse through the internet for real-time price information before joining the growing market.
Nonetheless, it is worth noting that a spike in the search value does not always mean that there is growing buying pressure in the market. In many cases, investors look for information but remain on edge.
When the current bull run kicked off, some crypto experts suggested a new FOMO setting. But, data from Google Trends suggest otherwise.
The value for ‘Bitcoin’ search on November 7, 2020, returned to 10 globally. That was considerably lower than the 93 value that was recorded in early December 2017 after Bitcoin’s record surge above $15,000. This means that the institutional investors are leading in the bitcoin price surge this time around.
Bitcoin’s Trading Volume Explodes
Another interesting discovery presented by Crypto Parrot, a crypto trading simulator, showed that the asset’s 30-day average daily trading volume exceeded the top 5 American companies’.
Notably, Bitcoin’s 30-day average daily trading volume between December 1 and December 31, 2020, was $39.1 billion. That volume is higher than the cumulative 30-day average daily trading volume for Microsoft (MSFT), Apple (AAPL), Facebook (FB), Amazon (AMZN), and Alphabet (GOOGL) stocks that stand at around $37.68 billion.
Institutions Acquire Over 1 Million In Bitcoin Worth Over $40 Billion
A growing number of established financial figures and institutions have been paying attention to crypto. Moreover, bitcoin’s price surge and its resilience during the pandemic mean that it can no longer get ignored. The digital asset is now gaining recognition as an alternative form of wealth and many now term it as the ‘digital gold.’
More firms and institutional investors continue to buy into the 2021 bitcoin bull run which, in turn, enhances investor confidence in the cryptocurrency. The firms are private, publicly traded, and ETFs. Data obtained from Bitcointreasuries.org shows that companies hold about 1,151,618 BTC which was equivalent to $40,319,646,803 on January 6, 2021.
Interestingly, the gains achieved by bitcoin are a result of the maturing crypto market. Over the years, the industry has followed bitcoin’s lead to establish itself to mitigate the previous fears by institutions. Comparing the current bull run to the one that happened three years ago, Bitcoin’s 2021 status makes it highly sustainable.
Bitcoin On Twitter
The total number of tweets about bitcoin keeps growing as the rally continues. As of January 9, the number of daily tweets has surpassed 300,000. However, it is over 50% below the daily all-time high of 685,647 set on December 8, 2017, in the bull run that set the 2017 bitcoin market peak.
In the last 28 days, 4,978,956 tweets about bitcoin were posted translating to 50% of the total number of tweets posted in December 2017. Back then, the retail investors set Twitter ablaze with posts about bitcoin totaling 9,923,951 between December 1 and December 28, 2017.
The top bitcoin Twitter accounts are also gaining more followers who seek their opinion and expertise of the nascent yet highly volatile market. Among the top gainers are Michael Saylor, Binance, Coinbase, and Changpeng Zhao among others.
Users on various social media platforms are taking up bitcoin discussions as it marches on higher. Many proponents are now convinced that this 2021 bitcoin bull run can reach $100K by the end of the year, and by then, it will be a trillion-dollar asset. For now, day traders seem to be having a field day from its explosive volatility.
Various regions are around the world have seen the amount of Google searches on bitcoin grow. The most recent top countries whose citizens are searching about BTC include Turkey, Switzerland, Austria, Nigeria, and the Netherlands.