Interest in Bitcoin is in long-term decline, according to data compiled by Google Tendencies. That’s despite recent innovation in BRC-20 tokens and price recovery in 2023.
Refereeing by Google search frequency, interest in Bitcoin is at the lowest point in two years. Worldwide search volume for the world’s oldest cryptocurrency has reached its lowest level since 2020.
While there were brief moments of increased interest during the negative events of 2022, such as the ecosystem collapse and bankruptcies, the common trend has been a decline in interest throughout 2023. This decline persists even as cryptocurrency prices show signs of recovery.
A Global Recession
Contrary to common belief, the decline in interest in cryptocurrencies is not limited to the United States. Although the regulatory environment in the U.S. has contributed to the recent decline, this downward trend began before the 2022 bear sector.
According to research from CoinJournal, crypto hubs such as Singapore are also witnessing a long-term downtrend in interest in Bitcoin. However, in line with Glassnode data, the long-term trend in active Bitcoin addresses tells a more complex story.
Bitcoin Interest over Time
Bitcoin active addresses are unique addresses used in Bitcoin transactions. They are usually a good indication of the level of engagement.
From approximately March 2020 to May 2021, the basic trend was a steady increase in active addresses. However, since the summer of 2021, the number of active addresses remained stable or decreased.
Currently, Bitcoin’s dominance is also at its highest since April 2021, as traders flee the plummeting altcoins following the recent SEC action.
In a statement provided to BeInCrypto, Copeland, CoinJournal Director, described an exodus from the sector, and indicated that anyone remotely attuned to the markets will be able to tell you that interest is not as high as it used to be. However, seeing the extent to which Google’s search volume has declined is jarring. Even with prices rising in 2023, many of those who have lost interest in cryptocurrencies are not coming back. Not only this, but volume continues to fall as crypto companies and other industry stakeholders battle a number of headwinds.
Neelakanti, CEO, and co-founder of Ecosapiens, offered some perspective on the trends. During bear markets, such a lack of interest is not unusual, he said that in 2019, we experience a similarly low level of interest, and this is to be expected when price action is trending sideways. There is also the broader regulatory uncertainty surrounding the digital asset space in the U.S. that is likely to be discouraging retail investors at the moment, he added.
In Neelakanti’s view, holding normally acts as a catalyst that drives prices higher. That will bring back interest on a large scale; he predicted that in fact, that’s when your cousin and your grandmother start calling you about this or that coin. And that’s when Google search trends tend to come up. So it’s mainly a question of timing in terms of where we are in the four-year cycle, he added.
By Marina Meza
