Retail Investors May Be Eyeing Bitcoin and Other Cryptocurrencies, Here’s Why

Retail investors have shown a higher level of interest in cryptos and therefore may be eyeing Bitcoin and other cryptocurrencies. Interestingly, their interest has surged to heights not seen since the bull run of 2017.  Data from Google Trends, cryptocurrency exchanges, as well as, media coverage about Bitcoin are all evidence that everyday users are once again clamouring for the leading cryptocurrency. Let’s take a closer look.

Google Trends Shows Spike in Cryptocurrency Searches

Google Trends shows that searches for the term “cryptocurrency” have surged significantly in 2020. And users in different countries have searched for Bitcoin or cryptocurrencies as a whole since January.

Crypto investor Cryptokea also revealed that Google searches for “Buy Bitcoin” has hit a seven month high, which gives it a score of 9. This score could also suggest a bull run since a score of 10 in November 2013 and May 2017 triggered a parabolic move.

Bitcoin Daily Trading Volume on Coinbase Surges

In line with that, Larry Cermark, a crypto analyst tweeted that Bitcoin’s daily average volume in February has surged and is almost the same as that of May 2019. Specifically, the asset’s daily average trading volume on Coinbase spiked to $342.46 million this month. Whereas the trading volume in May 2019 was $369.70 million when Bitcoin was trading around the $8,000 zone.

Cermark further outlined that there is a strong correlation between Bitcoin’s trading volume and its price. Coinbase, on the other hand, is one of the most popular cryptocurrency exchanges in the world. And retail investors are the major users of the platform.

Retail Investor’s Interest in Private Investments

Frank Chaparro, Director of News at The Block revealed that Grayscale’s Bitcoin Trust (GBTC) is the second-most active stock on leading U.S.-based OTC markets. Chaparro also outlined that the inflows into the Grayscale Bitcoin Trust Investment surged in the fourth quarter of 2019.

On the other hand, institutions or organizations are the major investors in GBTC. However, they are more likely to use established futures markets like the Chicago Mercantile Exchange (CME). As such, the surge of inflows into GBTC suggests that retail investors have also become major investors in this private investment vehicle.

More Media Coverage on Bitcoin

Reputable sites on the net are now covering more stories on cryptocurrencies. The same was the case in June 2019 when the virtual asset surged to a year’s high of $13,800. In contrast, media publicity for Bitcoin reduced significantly after its price tanked by 80% by December 2018.

Therefore, the recent surge in media coverage can be tied to the fact that readers on these platforms are showing more interest in crypto-related articles. And as would be expected, media outlets love to dish out what their visitors actually want to read.

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