This would make sense, as a billion-dollar asset that lost half its value in one day would normally have prompted consumers to run for cover. But it is interesting to note that the data shows that the demand for Bitcoin and other cryptocurrencies is significantly increasing.
Data shared by Yassine Elmandjra - crypto-asset analyst at the technology investment fund and research firm ARK Invest - shows that the "relative Google search interest" for the term "Bitcoin" is approaching the maximum of all the times (established for the first time at the peak during the 2017-2018 bubble) in "different emerging markets": Peru, Guatemala, Zambia, Uruguay, Kenya, Nigeria and Burkina Faso.
Interestingly, the sharp rise in interest in the main cryptocurrency has surfaced in the past week or two, countering the sentiment that the March slump has discouraged investors.
Qiao Wang found out that Coinbase Pro's BTC order book shows that there are six times more purchase orders than sales orders (- / + $ 6.000 on each side). In addition, this store has detailed a trend of stablecoin issuers who have literally coined hundreds of millions of dollars in cryptocurrency in recent weeks.
But what is causing this trend, which is antithetical to the reflexivity of the cryptocurrency market, according to which lower prices should generate less interest for this asset class.
Unfortunately, no one has a concrete answer. But there have been several trends that seem to be the fundamental reason for investing in Bitcoin and crypto-assets as a whole:
Anthony Pompliano, co-founder of Morgan Creek Digital, has nicknamed these two "rocket fuel" trends for Bitcoin, referring to how these factors will work in tandem to increase the demand for cryptocurrency at a time when the scarcity of it increases, creating a dynamic supply-demand that significantly favors the increase in prices.
And how are you trading cryptocurrencies in this period of forced quarantine? You have already tested automatic trading software like Bitcoin system? Let us know in the comments!
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