Bitcoin halving is about to happen and expectations are rising (Google searches prove it)
Why search?
Search numbers reveal that a larger portion of the general public is at least aware of Bitcoin and halving. Most of the research would probably be related to the search for information about halving and, therefore, could be of people unfamiliar with the currency.
In addition, during a period of unprecedented financial difficulties brought about by COVID-19, the US government expanded the existing money supply significantly. This has fueled fear of inflation and may be lending a greater interest in reducing the supply built into Bitcoin.
Fundamentals or FOMO?
The price action also corresponded to the increase in search traffic. Bitcoin's price increased by almost 25% in the first 10 days of the month.
This price action has speculated on a widespread fear of losing - often called FOMO. FOMO can raise prices without any underlying fundamentals, resulting in a bubble. Such an event occurred in the months that followed the previous halving, when in 2017 Bitcoin saw its historic record.
This current price increase, however, does not appear to be driven by FOMO. Larry Cermak, director of research and analysis at The Block, pointed out the difference in the two events:
https://twitter.com/lawmaster/status/1258715293708419072
- lawmaster
Cermak's analysis shows that the number of new Twitter followers for major cryptocurrency identifiers like Binance and Coinbase has not increased. Without these increases, price increases apparently are not based on FOMO.
However, the price went up (and fell sharply yesterday). This, together with the increase in searches on Google, led to believe that the fundamentals are stronger than during the 2016 event.