CRYPTO MOVERS AND PRICES
The entire crypto complex is rallying with BTC threatening a decisive move above USD 17,000. Spot volumes are some of the highest we've seen in the last two weeks.
Crypto Story of the Day
BTC is only about 15% from 2017 all-time price highs. Interest and search statistics, however, are miles away from those levels from 3 years ago.
With this morning's price action, BTC touched on its highest levels since early December 2017. In fact, BTC has only traded above these levels for about 2 weeks in its entire history. In 2017, BTC effectively saw parabolic action for 3 months before reaching these levels, while this time the coin has only been rallying for just over a month after a consolidation in the range of USD 10,000. That said, metrics around interest levels are nowhere near those seen in 2017. Google searches for 'bitcoin,' 'crypto,' 'BTC,' and other related terms are a fraction of what they were 3 years ago. The same can be said for Wikipedia searches for similar terms. Furthermore, volumes on major exchanges are also wildly reduced. While platforms such as Bitfinex would frequently see over USD 2B equivalent in volume in the last major bull-run, we are yet to see such levels in the last few weeks.
There are several intuitive justifications around why the recent price action has not kicked off the same kind of search and interest frenzy that it did in mid-to-late-2017. First is clearly the broader macro environment. While crypto performance appears to have benefitted from the dynamics emerging from Covid-19, there’s certainly plenty else to search Google for from a health, political, social, and even market perspective with many retail darling stocks showing impressive performance in similar periods. Additionally, this time around, there is less of a need for the public to educate themselves as in 2017, when many were hearing about Bitcoin and cryptocurrency for the first time.
Finally, the psychology of the price action in 2017, where cryptocurrencies were making new all-time highs for the better part of a year, is yet to happen for almost every major coin which conceivably has impacted investors' fear of missing out (FOMO). Ultimately, while it may be some time until we see anything remotely comparable to the level of interest in the space in the last bull run, as practitioners, we do not miss that intense noise.