What do you think about the search volume for "Bitcoin halving" hitting an all-time high?

The 2020 Bitcoin block reward halving is arguably the most important cryptocurrency event of the year, and the date is rapidly approaching. In fact, estimates derived from blockchain data suggest that the halving will pass in less than 30 days (a month).

At that time, the number of bitcoins rewarded for each block will be divided into two, so it is called "halving". The resulting impact is that Bitcoin's inflation rate will immediately drop by 50%.

Perhaps because of the market situation, you might think that the arrival of the halving has not attracted people's attention, but in fact, data from Google search trends shows that people's interest in the term "Bitcoin halving" is surging to an all-time high.

Bitcoin halving searches hit record high

According to Google Trends data as of April 14, as the halving event approaches, U.S. Google users searched the term “Bitcoin halving” more times than ever before last month, perhaps wanting to find more information about the event.

Google expects that in the next month, the demand for searching the term “halving” will be twice the current number. Data from Google’s global users shows a similar trend, also indicating that interest in “Bitcoin halving” is about to reach an all-time high.

Google Trends finds interest in a term by scoring the search volume for that term on a scale from 0 to 100, with 100 being the highest volume of interest for that term in a given region and timeframe. So the chart above shows that demand for the term “Bitcoin halving” is now three times what it was in 2016.

It’s important to note that interest in the term “halving” has experienced a similar parabola, but “halving” is also a common word in everyone’s communication, so it doesn’t help the data on Bitcoin halving either.

What impact will it have on the cryptocurrency market?

Although the “Black Thursday” crash in the cryptocurrency market in March obscured this correlation, there is a slight correlation between Bitcoin’s performance and the Google Trends score for the term.

In fact, interest in the term began to rebound during the week of December 8 last year, when BTC bottomed at $6,400, and then hit its highest price in this period during the week of February 15 this year, very close to the high of $10,500.

Additionally, interest in the halving has doubled since the March 12 “Black Thursday” crash, which also coincided with a 100% increase in the price of Bitcoin and other cryptocurrencies.

The chart below shows this potential correlation, with the red dots indicating the bottoms in Bitcoin’s price.

The continued growth in interest in the halving event, coupled with the persistence of this correlation, would suggest that Bitcoin is ready to rally in the coming weeks.

Moreover, fundamentally, the halving is not unexpected, but actually boosts the value proposition of Bitcoin. Interestingly, the econometric model of PlanB, a well-known cryptocurrency analyst, suggests that the fair value of BTC will rise to $50,000 to $100,000 after the halving event.

The original article comes from bitcoinist and was translated by the BluemountainLabs team. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.