pic.twitter.com/xtB9dpZpjD — Samson Mow (@Excellion) April 30, 2020 NewsBTC’s cursory glance of the search page for the search term “比特币” found out that, unsurprisingly, the reason why the Chinese public has taken such an interest in the cryptocurrency was due to its extreme price strength over the past two days. BTC is also seeing spikes of virality globally, not just in China. Data from Google Trends indicates that worldwide search interest in the terms often searched by new crypto investors — “buy Bitcoin” and “what is Bitcoin” are two of many — has started to rise over the past few weeks, showing strength even amid a global pandemic. On an anecdotal level, this writer has heard an increase of calls and received many more messages from friends and family regarding cryptocurrency, with some going even as far as to ask how they should buy BTC and why they should buy the asset. Only Adding to Brewing Bull Case While “比特币” starting to trend on one of China’s social media platforms is notable in and of itself, the overall trend of Bitcoin becoming more popular amongst retail market-watchers bodes well for the crypto market as a whole. Within two weeks as of the time of this article’s writing, Bitcoin’s block reward reduction, better known as a “halving,” will finally come to pass. A block reward reduction is when the number of BTC issued every block (every ~10 minutes) gets cut in half. The halving is a move that will irreparably push the inflation rate of BTC by 50% lower, decreasing the number of coins that can be sold by mining entities needing to maintain operations. Now, couple this with an influx of buying activity that is being caused by the recent price action and you have a simultaneous negative supply shock and positive demand shock, which should theoretically result in the price of Bitcoin increasing. Whether or not this trend plays out — as simple supply-demand dynamics suggests — remains to be seen. Photo by Prateek Katyal on Unsplashby Nick Chong via Bitcoinist.com
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