- Google searches for term bitcoin has increased 88% during the second week of March
- “BTC doesn't care. Unprofitable miners will just need to close down,” – analyst Bob Loukas
Bitcoin price is back above $5,000, trying to recover while the stock market and gold are taking a serious hit.
Amidst this drop in price, the interest in “Bitcoin” on Google has surged. On a scale of 0-100, Google Trend for the search term “bitcoin” has taken a sharp rise of 88%, going from around 40 to nearly 80.
In late June last year, when the price of Bitcoin surged to a high of $13,900, the interest in Bitcoin surged only to keep dropping since.
Similarly, the “buy bitcoin” term is also seeing a rise of 70%, to a level that was last seen in the last week of June 2019.
With bitcoin price tanking as much as 64% from the 2020 high this past week, it makes sense people are turning to buy the dip. As Wikileaks founder Edward Snowden said, “This is the first time in a while I've felt like buying bitcoin. That drop was too much panic and too little reason.”
Analyst Bob Loukas also shared with his 31.6k followers on Twitter that he “added 5.6BTC to my HODL #4yearJourney position overnight with a limit triggered.”
Loukas explained that “It's not a “bottom call”. We're in a market panic, anything is possible,” adding “This is just an investment. A price I was conformable with for a technology/investment I want to hold long term. The two aligned, nothing more.”
Order always gets restored
Given the fact that Bitcoin at current levels has the miner's unprofitable, with coming halving that could cut down the block rewards into half, this would further put pressure on bitcoin miners and force them to exit the market and push prices lower.
However, Loukas said, “BTC doesn't care. Unprofitable miners will just need to close down. The same is true with every commodity.”
That also won’t be anything new for Bitcoin as miners sell to cover operational costs and many have already sold because “it's about fiat anyway.” As miners exit, the hash rate of the network takes a drop and so does the difficulty and the network continues to produce bitcoin at the same pace.
“In the end if they cannot make money, they shutdown, difficulty goes down, and order is restored,” Loukas said.