- An increase in the internet searches for the term blockchain is much higher than bitcoin
On Oct. 25, Bitcoin price took flight, going from around $7,300 to $8,600 level that further continued the next day when it jumped to as high as $10,600. This surge marked the 3rd largest one day gain in Bitcoin’s history.
As Bitcoin jumped to early September level, after dropping to the 5-month low, the interest in Bitcoin also edged up.
Economist and trader Alex Kruger shared on Twitter that Bitcoin internet searches on Google, Baidu, and WeChat have seen a spike of 233%, 200%, and 145% respectively.
Bitcoin internet searches
Google +233% (USA)
This indicates searches likely increased because of the price pump, not the other way around. pic.twitter.com/P3YMJkOKIi
— Alex Krüger (@krugermacro) October 27, 2019
This spike in internet search is the result of price and not the other way around. However, an increase in the internet searches for the term blockchain is much higher.
On Oct. 23, the term blockchain saw 77k searches in comparison to Bitcoin’s 572k on WeChat. But two days later, on Oct. 25, these figures changed drastically, as while Blockchain registered 9.2 million searches, the term Bitcoin accounted for only 1.3 million, as per the data provided by Cole Kennelly.
Baidu searches for Bitcoin and Blockchain, Source: https://twitter.com/krugermacro
This is because of China’s latest move towards blockchain technology. President Xi Jinping recently talked about seizing the opportunity and take the “leading position” in the emerging field of blockchain technology.
Then as we reported, China passed a new law to regulate cryptography that will be implemented from January 2020.
Detailing the Price Action
But how did the interest in blockchain transferred to Bitcoin? Kruger explains that Xi Jinping endorsing blockchain had investors buying Bitcoin as “many in China associate blockchain with bitcoin.” Now, speculators speculate on that and front-run it or use the news to drive price.
This, Kruger says is just like the fake China macro hedge narrative, further explaining that there was no actual hedging going on, just speculation on such hedging that drove prices up.
But, “this narrative has more weight than the macro one, as odds of it creating mainland flows are higher,” he added.
Nic Carter, founding partner of Castle Island Ventures also found fault in this narrative as he says, “Much of the time it’s a big ol fund no one has heard of liquidating /buying in.”
Dovey Wan, the founding partner of Primitive Ventures, further provides an insight into the price action.
The CCP meeting where Xi gave the talk was held on Oct. 24 which was broadcasted to the billions the next day.
As a result, WeChat, where mostly industry people come to know about news on first hand, saw a significant spike in Blockchain but Bitcoin didn’t saw a hike until the next day. Baidu, which is usually visited by newbies, saw an increase of 1300% in Blockchain surpassing BTC.
“The Blockchain shill from Xi definitely helps Bitcoin awareness as well, the two concepts are interrelated, hard to isolate one from each other,”