Netherlands Bank Advisor Says Bitcoin Price Coincide With Google Searches, Then Bitcoin Futures Burst It
The google search determines the price of the top valued cryptocurrency until the Bitcoin future bursts it, states Joost van der Burgt, a policy advisor at the Dutch National Bank in a phone chat with CNBC.
Cryptocurrency Price, A Product Of Google Search
The year 2017 was a year of good omen for cryptocurrency as the top-valued cryptocurrency reached its zenith of almost $20,000 thus far. The Bullish trend bitcoin took in 2017 has been attributed to different reasons and thoughts. Analyst and enthusiasts alike attribute it to parabolic movement and bearish experience that bitcoin must go through before it is fully developed.
The bearish trend it has taken in 2018 that has seen it lost over 60% value it had in 2017, has placed the cryptocurrency market in a gloom, with an estimate of $600 billion shed in market cap.
Joost van der Burgt, a policy advisor at the Dutch National Bank, shares his thoughts on the trend that has trailed cryptocurrency before 2018 and in 2018. This he attributed to awareness on the digital currency.
Burgt stated that,
“Every time Bitcoin was in the news, be it positive or negative, the price went up accordingly.” This means the negative impacts it to be negative and the positive makes the price positive.
This trend he said moves with the google search trend, as the interaction of the ecosystem determines the cryptocurrency prices with Google search until the introduction of Bitcoin future.
“My take on it is that because of the introduction of futures, that might have deflated the bubble before it got to a level where it might burst completely.”
A similar thought to Burgt is shared by researchers at San Francisco Federal Reserve that also aligned the bearish trend in bitcoin price to the launch of the futures market.
Crypto Value Defying Minsky's Financial Instability Hypothesis
Hyman Minsky's economic bubble theory that profers five stages of financial bubble of displacement, boom, euphoria, profit taking and panic, was defied by bitcoin according to Burgt. He stated that bitcoin price fell off the panic stage.
Awareness is key to the growth and development of cryptocurrency. But notably, amid the bearish trend, there has been more awareness and optimism of its rise in value, but it has failed to affect the value of the cryptocurrency for good as at the moment. Bitcoin presently trades at $7000 with a high level of confidence from enthusiasts alike that it’ll likely hit $18,000 before the end of 2018.