The price of Bitcoin is now trading back above $5,000, currently at $5,275, up 8.85% while managing the daily trading volume of $1.94 billion on top ten exchanges with real volume. The entire market is in green, trying to recover the losses while the stock market and gold are still tumbling.
Amidst this market rout, the interest in “Bitcoin” has increased as the Google searches of the term jumped 88%. Google Trends, that shows the interest in a term for over a period on a scale of 0-100, saw interest in bitcoin’s going from about 40 to almost 80 the past week.
The last time, Bitcoin was at this level was when the price was at a high of $13,900 In late June last year. Ever since then, this interest has been dropping until now.
Source: Google Trends
Interest in “Buy bitcoin” is also seeing a spike of 70%, which was last seen in the last week of June 2019, the same as “bitcoin.”
Given the fact that the BTC price crashed as much as 64% from the 2020 high this past week, it looks like people are buying the dip and stacking some sats.
“This is the first time in a while I’ve felt like buying bitcoin. That drop was too much panic and too little reason,” shared Wikileaks founder Edward Snowden last week.
Analyst Bob Loukas also shared on Twitter to his 31.6k followers that he “added 5.6BTC to my HODL #4yearJourney position overnight with a limit triggered.”
However, “It’s not a “bottom call”. We’re in a market panic, anything is possible.” Loukas continued, “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.”
As we reported, Bitcoin at current price levels has made it unprofitable for the miners to mine BTC. This combined with the upcoming halving in May — that would cut down the block rewards into half — means downward pressure on bitcoin price as unprofitable miners exit.
But “BTC doesn’t care. Unprofitable miners will just need to close down. The same is true with every commodity” said the analyst.
As we are currently seeing since March 5th, the hash rate of the network has already dropped 28% from it’s all-time high. Bitcoin network difficulty is yet to take a hit and when it does, it would make it easier for new miners to enter the market and keep producing the same bitcoin every 10 minutes.
This won’t be anything new as miners sell to cover operational costs and according to Loukas, many have already sold their BTC because “it’s about fiat anyway.”
“In the end if they cannot make money, they shutdown, difficulty goes down, and order is restored,” Loukas said.