Bitcoin enters sharp correction after gaining more than 70% in a month’s time. The social media interest in Bitcoin has reached a new all-time high.
Massive volatile and heavy selling sweeps Bitcoin (BTC) as the world’s largest cryptocurrency tanks 15% a day after hitting its all-time high of $34,000 on Sunday, January 3. At press time, Bitcoin is trading at $28,973 levels with its market cap dropping below $600 billion. All these Bitcoin movements have provoked a surge in social media interest as well.
Also, the Bitcoin price dominance in the market has fallen below 70% as altcoins rally with Ethereum leading the show. After a massive 30% rally last week, correction and profit-booking have finally taken the tall. As per popular Twitter handle Whale Alert, there have been massive whale deposits at the exchanges in the last 24-hours.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 3,985 #BTC (133,957,367 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) January 3, 2021
Whale Alert has spotted nearly nine magnanimous Bitcoin transfers between 2000-9000 BTC. Besides, there have been other lumps of 4000 and 6000 BTC transfers.
Speaking to CNBC, David Rosenburg, the chief economist at Rosenburg research notes that Bitcoin is currently in a bubble phase right now. Rosenburg’s comments came after the BTC price surged nearly 70% since the beginning of December 2020. He said:
“The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal”.
On the other hand, he also praised gold saying “It has 1/5 of the volatility that bitcoin does. I’ve been very bullish on gold, and I remain bullish on gold.” Note that Rosenburg’s comments came before today’s BTC price crash.
Social Media Interest in Bitcoin Spikes
Following the continuous rally over the last few weeks, the social media interest in Bitcoin (BTC) has hit new highs. As BTC price entered the $30,000s, the Twitter analytics data shows that #Bitcoin tweets have spiked to a new all-time high. Cryptocurrency data firm The TIE presented interesting metrics about the same.
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The number of unique Twitter accounts tweeting about #Bitcoin has just hit an all-time high of 66,832, surpassing the previous high of 64,652 set on 12/27/2017. pic.twitter.com/wW8t4fqeIT— The TIE (@TheTIEIO) January 3, 2021
On the other hand, the search volumes for Bitcoin (BTC) has also hit a new peak in the last 12 months. Speaking to CNBC, PwC’s global crypto leader Henri Arslanian said that the recent rally in Bitcoin has been majorly due to the massive institutional interest and the FOMO following it.
“When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there are two big elements driving it. One is the continuous entry of institutional players. More than the price of bitcoin, I’m watching the number of new institutional players coming in, which I think have an outsized impact on the markets,” he added.
More news on Bitcoin can be found here.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
