Bitcoin Search Volume Drops 67% Despite $90,000 Price Surge

Bitcoin search volume on Google has historically served as an indicator of public interest in the cryptocurrency. Typically, a surge in Bitcoin searches coincided with price rallies, and vice versa. However, recent observations by Bitwise CEO Hunter Horsley reveal a notable shift in this trend. Despite Bitcoin's price hovering around $90,000, the search volume for the keyword “Bitwise” on Google has remained low for an extended period.

Google Trends data shows that Bitcoin search volume has dropped significantly compared to previous peak periods. Over the past year, public interest has fallen from nearly 75 points to around 25 points, with no clear signs of recovery. The Google Trends chart reveals that public interest gradually declined after spikes in search volume during 2017 and 2021, aligned with major Bitcoin bull runs. It has now been fluctuating at a low level for several years.

Horsley emphasized that although Bitcoin’s price is soaring, the lack of public attention suggests that this rally is not driven by FOMO (fear of missing out) from retail investors. Instead, Horsley believes institutional investors are the primary force behind the current Bitcoin surge. “Bitcoin at $94,000, yet — Google searches for ‘Bitwise’ near long-term lows. This hasn’t been retail driven. Institutions, advisors, corporates, and nations have come into the space,” Hunter Horsley said.

The diversity of investors participating in Bitcoin has expanded significantly. This marks a new phase of maturity for the cryptocurrency market. It doesn’t mean retail investors have lost interest; they participate through institutional-grade investment products. Large institutions like BlackRock, Fidelity, and ARK Invest have actively entered the market through Bitcoin ETFs. These funds have attracted substantial capital flows indirectly sourced from retail investors through institutional channels.

Several other factors could explain the decline in Bitcoin search volume on Google Trends. First, Bitcoin is no longer a novel concept. After more than a decade of existence, most people interested in crypto already possess basic knowledge. They no longer need to search for information about Bitcoin as frequently as before. Second, changes in information-seeking behavior also play a crucial role. Many users now turn to AI tools or social media platforms to get updates, rather than relying on Google searches.

In summary, the drop in Bitcoin search volume on Google Trends, despite the cryptocurrency's price surge, indicates a shift in market dynamics. Institutional investors are increasingly driving the market, while retail investors are participating through institutional channels. Additionally, the changing nature of information-seeking behavior and the familiarity of Bitcoin among the public contribute to the decline in search volume. This trend reflects the maturing of the cryptocurrency market, with a broader range of participants and more sophisticated investment strategies.