Bulls Are Back In Town: Bitcoin Bounces Back From ETF Slump to Regain Over 4%

Avi Rosten


Bitcoin (BTC) has had a turbulent day.

Dropping over 5% in price this morning to fall below the $8,000 level -  it seems that the slump was prompted by the SEC’s (US Securities and Exchange Commission) rejection of the Winklevoss twins’ bitcoin ETF application for the second time.

The cryptocurrency however, has almost completely bounced back to its former heights at the time of writing – regaining over 4% to approach the $8,200 mark - as the title chart from CryptoCompare shows.

All About ETFs

With many suspecting that the current mini-bull run is largely motivated by anticipation surrounding the SEC’s proposals from VanEck and SolidX – it is likely that investors took the rejection of the Winklevoss’ ETF has a bad sign ahead of the SEC’s decision – expected in mid-August.

While there are numerous other bitcoin-related ETF proposals currently lodged with the SEC, those of VanEck and SolidX have generated by far the most attention – with several hundred comments submitted regarding the proposals on the SEC website.

For comparison, the proposals filed by Boston-based ETF provider Direxion Investments at the time of writing have prompted only three comments.

With bitcoin in the latter half of July bucking the generally bearish trend, investors will be encouraged by the resilience shown in the face of ostensibly bad news. A truer test of market sentiment however, will likely emerge when the SEC’s decision on the more hotly-anticipated bitcoin ETFs arrives.

Bitcoin Search Interest Hits 14-Month High, Google Trends Data Shows

Francisco Memoria

Bitcoin’s price movement this year has seemingly been getting more and more people to search for it. Data from Google Trends shows search interest for the flagship cryptocurrency has recently hit a 14-month high.

According to Google’s data, searches for the keyword “bitcoin” have recently seen a high they hadn’t seen since February of 2018, when the cryptocurrency was trading between $8,000 and $11,000. The cryptocurrency is currently trading at $7,900.

search interest for bitcoin since September of 2017

During last year’s bear market, which saw BTC drop from a near $20,000 all-time high to a $3,200 low, search interest for the cryptocurrency drop significantly. Its increase shows to some that the bull market is over.

Google Trends uses an index-like approach to represent search interest, but doesn’t show exact figures. Nevertheless, it shows interest in the cryptocurrency went from 12 to 20 over the last two weeks, out of a total of 100.

The countries showing the most interest in the flagship cryptocurrency are South Africa, the Netherlands, Slovenia, Austria, and Nigeria. The search giant’s tool also shows that searches related to cryptocurrency exchanges like Binance have been growing significantly.

Baidu, China’s largest search engine, is believed to also be seeing search interest for BTC rising. Back in April, when searches for bitcoin tripled on Google, local cryptocurrency news source cnLedger showed BTC was among Baidu’s hottest emerging keywords.

This type of data seems to confirm studies that suggest there’s a correlation between bitcoin’s price movements and search interest for it. In 2017, search engine marketing firm SEMRush found that BTC’s price had a 91% correlation with Google searches for it.

Per the study, the cryptocurrency’s price moved up and, as a result, people started searching more for it to learn and find out what was going on. Presumably, search interest grows as mainstream news outlets pick up on BTC’s rising price and report on it.

This Sunday, May 19, one of the oldest and most-watched newsmagazines on TV, 60 Minutes, is doing an episode on Bitcoin, which could help explain the growing interest.

It’s worth noting Google banned cryptocurrency ads from its platform back in 2017, but rolled the ban back a few months later. Microsoft’s Bing, one of Google’s largest competitors, also banned crypto-related ads, and data has shown it blocked over 5 million cryptocurrency-related ads last year.