Crypto Euphoria is Here; Worldwide Google Trends for Bitcoin, Ethereum, & DeFi Shoot to New Highs
Crypto entering its best case scenario for early 2021 as retail and institutions both are getting heavily invested.
Bitcoin jumped to yet another all-time high on Wednesday, just two days after seeing its biggest one-day decline since March.
The leading cryptocurrency breached $35,000 and missed hitting $36,000 by less than $150 on Coinbase amidst the latest bout of volatility in the cryptocurrency market.
“Clear bull market, and we’re not getting 30% to 40% drops like in 2017,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “The market is more mature with bigger buyers. Keep in mind though that we’re in a parabolic phase and they do top out.”
These sharp reversals of pullbacks, even the 20% one are the result of institutional investors continuing to buy Bitcoin BTC -0.51% Bitcoin / USD BTCUSD $ 41,020.16
-$209.20-0.51% Volume 24.29 b Change -$209.20 Open $41,020.16 Circulating 18.77 m Market Cap 770.08 b 1 d $45 Billion Asset Manager, GoldenTree, Is Investing in Bitcoin 1 d Wells Fargo Is Offering Crypto Exposure to its High-Net-Worth Clients 1 d USD Longs Climb to Highest Level Since March 2020, Greenback’s Downturn Coincides with BTC Rally .
“Monday’s dip was instructive as institutional investors used the opportunity to buy in,” said Matt Long, head of distribution and prime products with crypto brokerage OSL in Hong Kong. “Institutional investment is firmly in the digital asset sector, and potentially accelerating.”
As we reported, in its latest report, JPMorgan forecast $146,000 as Bitcoin’s long-term price target, however, they see it unsustainable this year.
Gathering the Attention of Retail
But it is no longer only institutions in the cryptocurrency space, retail has also made a comeback.
As Wayne Trench, chief executive officer at OS Limited noted in his recent interview with Bloomberg, “whilst this rally has definitely been much more institutionally led we are seeing signs of retail interest and activity starting to follow on now.”
He pointed to the number of times Bitcoin is being Googled, which has risen to levels five times what they were just a few months ago.
“Widespread bitcoin euphoria is now here. Have to thank central banks & governments. Without their stimuli, the top would likely be close. But stimuli are set to continue, and real rates are to remain negative for the foreseeable future. We are thus IMO far from 2021's top,” noted trader and economist Alex Kruger.
The same is the case for ETH and DeFi which recently joined Bitcoin in its uptrend. While the interest in Ethereum has surpassed Jan-Feb 2018 levels, it is projected to reach even higher, much like “DeFi Crypto.”
“Bitcoin and ethereum will moon and every alt will get lifted. Crypto is entering its best-case scenario for early 2021,” Kruger said while noting that the only short-term roadblock standing in the way is treasury secretary Steven Mnuchin’s FinCEN rulemaking.