Bitcoin Needs a New Narrative to Restore Confidence, Analysts Say
Bitcoin News: Bitcoin (BTC) obsession has been declining at a staggering pace since the start of this year; the largest coin couldn’t sustain trader’s attention and the confidence that it had attained in the final quarter of last year.
Cryptocurrency market analysts are blaming declining trader’s interest for the bearish trend over the last couple of months. They believe Bitcoin needs substantial fundamental support to rebuild trader’s confidence, either from its network or through Wall Street investments.
Declining Bitcoin Searches Isn’t a Good Sign
Searches for Bitcoin plunged almost 75% since the start of this year — which isn’t a good sign for the price performance of crypto coins. Searches for Ethereum (ETH) and Ripple (XRP) are also down more than 70% in the past five months.
Nicholas Colas, co-founder of DataTrek Research, has shown his concerns on declining trader attention towards bitcoin and other digital currencies.
The researcher said, “We use Google Trends to track search queries for ‘bitcoin’ as a proxy for potential new buyers,” Colas said in an email to clients Monday. “Bitcoin needs a new narrative in order to reestablish global attention.”
What Would Be the New Narrative
Nicholas Colas is certainly right about the cryptocurrency markets. Bitcoin and the rest of the digital currencies failed to gain traders attention amid the lack of fundamental support.
The co-founder of DataTrek Research further claims that he loves Bitcoin; saying “While we love the idea of Bitcoin (and own a little ourselves), we are not fans of buying it at current levels.”
The market pundits believe that Bitcoin needs support from regulators all around the globe to strengthen trader’s confidence. The reports of fraud, unfair trading practices, and money laundering issues have negatively contributed to the Bitcoin mania. Wall Street Adaptation could also provide a new life to cryptocurrency markets.
Featured Image: twitter
By Siraj Sarwar