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“Buy Bitcoin” Is Lighting Up Google as Cryptocurrency Outshines Gold

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The Google search engine has been turning up a lot of bitcoin as of late, a sign of growing interest in the cryptocurrency. In fact, searches for how to buy bitcoin have far outpaced similar searches about gold, according to a recent report.

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Bitcoin Search Results

According to The Telegraph, the search term “buy bitcoin” first outstripped “buy gold” on Google in May. Its popularity has since grown manifold. In fact, “buy bitcoin” is now three times more popular than the search term “buy gold” during the 2008-09 financial crisis.

The financial crisis triggered the most protracted recession since the 1930s, making gold the rational choice for risk-averse investors. Gold prices would later surge to record highs, eventually maxing out above $1,900 a troy ounce in 2011.

Bitcoin is often referred to as digital gold for its perceived haven-like status. Although many would disagree with that assertion, bitcoin and gold share some important similarities. Both are finite resources and reflect a general distrust in governments and traditional financial institutions. Apparently, bitcoin has also been used to shield against growing economic, financial and geopolitical risks, although we don’t have enough data to draw definitive conclusions about its risk-hedging capability.

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Bitcoin set another milestone on Thursday by smashing through $14,000. The world’s foremost digital currency has added a jaw-dropping 42% over the past five days, which is equivalent to more than $4,000.

Google search trends tell us that interest in the digital currency skyrocketed once more after prices rose above $10,000 for the first time. As bitcoin crossed the five-digit mark, Google search interest for the coin rose from 26 to 100. According to Google, these numbers represent “search interest relative to the highest point on the chart for the given region and time.” As you might expect, 100 is considered peak popularity for a search term.

Demand Rising

Google search results are a proxy for underlying demand in the cryptocurrency market. Higher search density suggest greater buyer interest and trading volumes for bitcoin. A simple look at the latest trade volume data corroborates this point.

Bitcoin’s 24-hour trading volumes surpassed $13.2 billion on Thursday, according to CoinMarketCap. That’s more than double the previous day’s volumes. Considering that BTC/USD has more than doubled since October, it’s reasonable to assume that higher search results have been associated with increased trading activity.

South Korea’s Bithumb is turning over the most bitcoin trades at the moment. The exchange is responsible for 10% of daily transactions, which is equivalent to roughly $1.3 billion. Bitfinex is a close second at around 9.4% of the total market.

With volume like this, it’s little wonder why bitcoin controls nearly 60% of the cryptocurrency market. Its growth has also triggered a buying frenzy in other cryptocurrencies, commonly referred to as altcoins.

Growing demand for cryptocurrency is also reflected in another key metric – the number of account registrations. For that, we look not further than Coinbase, which is America’s largest cryptocurrency exchange. The platform recently reported 13.3 million accounts, including 100,000 new signups over Thanksgiving weekend.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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2 Comments

  1. sakuser

    December 7, 2017 at 6:56 am

    Would this mean we can expect for bitcoin to keep going up at least short term?

    • Sam Bourgi

      December 7, 2017 at 7:05 am

      Interest is definitely there. I wouldn’t be surprised if it goes up as bitcoin futures are introduced.

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Companies are Lining Up to Launch Bitcoin ETF, According to SEC

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Two companies have stepped forward with applications to the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF), according to a recent report from CCN. The renewed push toward ETFs comes as more institutional investors look to enter the burgeoning cryptocurrency market.

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Bitcoin ETF

According to the SEC’s public filing system, regulators received new applications for the REX Bitcoin Strategy ETF and Rex Short Bitcoin Strategy ETF, as well as the VanEck Vectors Bitcoin Strategy ETF.

REX, which is based in Connecticut, filed its application on Dec. 8. The New York-based VanEck filed its application on Dec. 11 in a sign that more market players were looking to capitalize on a booming market.

VanEck had previously filed to create a bitcoin ETF before the SEC struck down a similar proposal. That being said, VanEck will reportedly provide the pricing data for an upcoming bitcoin futures contract to be made available via the Nasdaq exchange. Unlike the CBOE and CME futures contract, the Nasdaq version will pull pricing information from 50 sources provided by VanEck.

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A bitcoin ETF would make the digital currency widely available to millions of investors through common retirement accounts, such as IRAs and 401(k)s.

The highly coveted but elusive bitcoin ETF has been tried before by Tyler and Cameron Winklevoss, who failed to earn SEC approval earlier this year. Regulators disapproved the ETF on several grounds, including lack of regulation and a general inability to enter necessary surveillance-sharing agreements.

The SEC’s ruling on the Winklevoss ETF puts considerable doubt over whether the new products will ever get approved. Analysts say that ETFs could spark an even bigger rally for an asset class that has already added hundreds of billions of dollars to its value this year alone.

Bitcoin Trade Volumes

Bitcoin’s market cap surged past $290 billion on Monday as institutional money flowed into the asset class following the launch of the CBOE futures contract. Trade volumes over the past 24 hours reached $12.6 billion, according to CoinMarketCap.

Bitcoin-dollar transactions on Bitfinex accounted for 11.6% of the daily transaction. South Kore’as Bithumb accounted for nearly 11% of the daily turnover. Coinbase’s GDAX also saw 6.5% of the daily turnover, data showed.

At press time, BTC/USD was trading north of $17,100. Prices skyrocketed past $19,000 last week.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Global Cryptocurrency Market Now Worth More Than J.P. Morgan

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Cryptocurrencies

The cryptocurrency market notched new all-time highs Wednesday, overtaking America’s largest bank in the process.

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Cryptos Overtake J.P. Morgan

The total value of all cryptocurrencies in existence surpassed $370 billion in mid-week trade, according to CoinMarketCap. The gains were inspired by another record-setting surge in bitcoin, IOTA and Monero. Combined, the crypto market’s value overtook that of J.P. Morgan Chase & Co, which is worth roughly $367 billion.

J.P. Morgan is the stomping ground of Jamie Dimon, one of bitcoin’s most outspoken critic. Dimon has called the digital asset a “scam” that is destined to “blow up.” Interestingly, his firm has facilitated cryptocurrency transactions, putting Dimon in the crosshairs of some interesting banter.

J.P. Morgan, which is a member of the prestigious Dow 30, saw its share prices decline slightly on Wednesday. The stock has returned 22% this year in a rally that has been largely inspired by Donald Trump’s electoral victory.

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Cryptocurrencies have been on an tear all year long, but a decision by China in September to ban trading triggered a massive correction in the market. It didn’t take long for money to flow back into cryptocurrencies as investors quickly bought the dip.

China remains largely on the outs of the cryptocurrency arena, but other nations have taken the reigns. Japan and South Korea have quickly emerged as hotbeds for all things cryptocurrency. South Korean exchanges have been at the center of large rallies in bitcoin and altcoins in recent months.

Bitcoin Continues Higher

Bitcoin prices broke above $12,000 earlier this week as investors awaited the launch of the first cryptocurrency futures contract on Sunday. CBOE made a surprise announcement earlier this week that it aims to become the first major exchange to initiate bitcoin futures. That honor was expected to go to the rival CME Group, which plans to launch its bitcoin derivatives product Dec. 18.

Nasdaq is also reportedly working toward a bitcoin derivatives product for sometime next year.

At last check, bitcoin was trading north of $13,000. The digital currency system has added a staggering 28% in the last five days. It was responsible for nearly 48% of daily turnover on Wednesday. IOTA was second at nearly 9% and Ethereum third at 8%.

Bitcoin’s relentless surge has rubbed off on other cryptocurrencies. Currently, there are 20 altcoins valued at $900 million or greater.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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CBOE to Launch Bitcoin Futures Sunday, Leapfrogging CME Group

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The CBOE Futures Exchange will begin offering bitcoin futures beginning 6:00 p.m. ET Sunday, a clear sign that the race for cryptocurrency dominance is heating up.

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Futures Announced

The announcement to enter the cryptocurrency market this weekend was made on Monday by CBOE chairman and CEO Ed Tilly.

“Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure,” he said in a release.

The release also indicated that trading in CBOE bitcoin futures would be free through December. The futures contract will trade under the ticker symbol “XBT” and will be cash settled against the price quoted by Gemini Trust, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss.

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CBOE confirmed last month it would venture into the bitcoin space, but hadn’t indicated when the contract would go live. Before Monday, it was assumed that the Chicago-based exchange would launch its bitcoin futures contract would begin early next year.

Prior to the announcement, it was generally assumed that CME Group would be the first to launch its bitcoin futures platform. Earlier this week, the exchange received approval from the U.S. Commodities and Futures Trading Commission (CFTC) to list bitcoin futures.

Last week, Nasdaq also threw its name in the mix for bitcoin futures, according to reports from Bloomberg News. It is widely expected to become the third major U.S. exchange to enter the market. Although Nasdaq does not have the large institutional backing as CME or CBOE, it will offer a more comprehensive pricing model based on 50 data sources provided by VanEck. By comparison, CBOE has just one while CME has four.

Bitcoin Euphoria

Bitcoin has emerged as the biggest story of 2017, with prices soaring tenfold since Jan. 1. Once viewed as an obscure and esoteric digital currency, bitcoin is now considered a leading alternative asset.

BTC/USD surpassed $11,000 last week en route to fresh record highs. Prices continued to push toward record levels on Tuesday, bringing the total market cap closer to $200 billion.

At press time, bitcoin was valued at $11,659.

Bitcoin’s record-setting run has laid the groundwork for a bull market in cryptocurrency. The total market capitalization of the crypto asset class crossed $350 billion over the weekend. That represents a gain of more than 1,800% since the start of the year.

At last check 19 cryptocurrencies were valued at $1 billion or more, with OmiseGO (OMG), QTUM (QTUM) and Lisk (LSK) joining the exclusive club.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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