Concerns about "halving Bitcoin" are on the rise in Google Trends

According to many estimate Based on mining factors, in about 32 days, Bitcoin will witness the next halving. Accordingly, the 12.5 BTC reward is minted when a Bitcoin block is mined to 6.25 BTC, resulting in a drop in the asset's inflation rate. Some investors believe this halving will push the price of Bitcoin higher, as the supply drop will cause the price to rise.

This halving time seems to receive a lot of attention from the community. Data from Google Trends showing that searches related to "Bitcoin halving" and "halving" have both witnessed a major growth in recent months.

The chart below shows that over the past 12 months, global interest in "halving Bitcoin" has increased to about 78 between April 19, 2019 and early this month, right after reaching 100 in mid-March.

Google Trends halving bitcoin

Source: Google Trends

Google Trends reports concerns about search terms by grading search volume on a scale of 0 to 100, compared to the highest score on a chart in a given region and time. For example, looking at the past 12 months in the US, in mid-March, the number of searches for "Bitcoin halving" reached 100, the highest in the past 12 months. A score of 78 in early April 2020 showed that searches for halving Bitcoin were down 22%.

Much of this interest began in December with a score of 22 before rising to 85 in mid-February.

This spike is correlated with Bitcoin's rally from a low of $ 6,400 in December to $ 10,500 in mid-February, suggesting that the hype of the halving event is the major impact factor. Of course, this correlation was disturbed by the rapid collapse of Bitcoin to $ 3,800 in March, which was mainly due to panic in markets as Covid-19 spread.

Google Trends data published in the following week from April 5 to 11 shows that interest in halving Bitcoin will increase to its highest level in 12 months after the week ends. Google predicts that every American will search for "halving Bitcoin" twice this week, more than the previous week.

Google Trends

Source: Google Trends

It is important to note that the chart above is still a prediction, indicated by a dotted line at the right end of the graph.

An increase in the search level of this term seems to be related to consistent news on this issue as the event draws near.

Famous investors like Mike Novogratz's Galaxy Digital and Mark Yusko's Morgan Digital, referring to the term "halivng" in recent interviews with CNBC and Bloomberg news agencies, is likely to drive interest in the event.

To some extent, the halving event was exaggerated over the weekend, making its importance for Bitcoin price and how its operation become a hot topic.

The effect of halving on Bitcoin price

The common story is "halving synonymous with bullish". PlanB, a quantitative analyst in the crypto space, has share a chart in March 2019 shows the scarcity of Bitcoin - most clearly shown by the ratio between the supply on the ground and the annual inflation rate, called the stock-to-flow ratio - correlated. with the network value of the property.

In fact, PlanB found that according to its chart, Bitcoin value increased exponentially as BTC became scarcer. For example, the model predicts that the fair value of the Bitcoin network will increase from $ 1 trillion to $ 2 trillion, i.e. about $ 55,000 to $ 110,000 per coin after the halving.

But while many people believe in PlanB's model, others have questioned the authenticity of the value of Bitcoin soaring after halving.

Analyst Alex Krüger has explain in October 2019 that "the miner block reward concept (as we see in halving times) is bullish for BTC in the long run." Trader said that this mentality is simply understood as "the miner also need to eat". In other words, they need to pay their electricity bill by selling Bitcoin to continue their operations.

And others, still say it was a disappointing event.

Seattle-based Strix Leviathan hedge fund explained in one report Recently there is no accurate evidence that the halving event decides the bullish of a cryptocurrency.

"“The Bitcoin supply curve is a key feature of crypto missionaries… Market participants have predicted this halving and all future halving events since 2009 will be one. The previous Strix Leviathan study has shown that the impact of halving events is not visible from the broader market sentiment. ”

Either way, once the halving is over, Bitcoin's inflation rate will be lower than the US dollar's inflation rate of 2%.

Thuy Ngan

According to Longhash

Follow the Twitter page | Subscribe to Telegram channel | Follow the Facebook page

Crypto loans are only 5.9% of the annual interest rate - you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →