[Bitcoin Now] Search Volume Surges with Each Sharp Drop... Interest Plummets as Volatility Decreases

Search Volume Surged During Luna Incident
Recently Dropped to a Search Index of 33
High Interest Region Is El Salvador

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] It has been found that the frequency of related searches surged every time the price of Bitcoin plummeted during the cryptocurrency downturn. However, as Bitcoin's price volatility later decreased, the search volume also declined.

According to Google Trends on the 13th, the highest search frequency for the keyword ‘bitcoin’ in the past 90 days was recorded on May 12, when the Luna Classic incident caused volatility exceeding $4,100 (approximately 5.37 million KRW). At that time, Bitcoin's price sharply dropped from around $30,910 to $26,760, and the search index reached 100. This index quantifies the number of searches, with the peak search volume set at 100 and other values assigned proportionally.

The next highest level was recorded on the 19th of last month, with an index of 98. At that time, Bitcoin's price fell more than 10% amid recession concerns following the U.S. Federal Reserve's giant step (a 0.75 percentage point interest rate hike). Additionally, the index was 97 on both the 18th and 13th of last month. During these dates, Bitcoin's price plunged due to a bank run at a cryptocurrency-related lending company and the U.S. Consumer Price Index (CPI) rising to its highest level in 41 years in May.

However, as Bitcoin's price stopped its sharp decline and stabilized, the index showed a downward trend after the 19th of last month. On the 30th of last month, the index rose to 52 due to a price drop following the bankruptcy of the cryptocurrency investment hedge fund Three Arrows Capital (3AC), but it has since declined. The most recent figure, on the 9th of this month, dropped to 33, with the price fluctuating around the $21,000 level.

Over the past 90 days, the keyword most frequently searched alongside ‘bitcoin’ was luna, with an 800% increase in search volume compared to before. This was followed by luna coin (700%), luna price (600%), terra luna (550%), and luna crypto (400%). The price of TerraUSD (UST), a stablecoin designed to be pegged to $1, sharply fell, causing the price of its sister coin Luna Classic to drop as well, reflecting the cryptocurrency downturn.

Furthermore, the region showing the highest interest in the search term ‘bitcoin’ was El Salvador. The Netherlands and Switzerland also showed high interest, but their levels were about one-third of El Salvador's. El Salvador is one of the countries most closely associated with Bitcoin, having adopted it as legal tender and purchased Bitcoin using national budget funds. However, due to the sharp price drop resulting in losses of up to 60%, there are analyses suggesting the country could declare default.

Meanwhile, according to the global cryptocurrency market tracking site CoinMarketCap, as of 10:46 a.m. on the day, Bitcoin's price was recorded at $19,420 (approximately 25.4 million KRW), down 2.51% from the previous day. Bitcoin's price declined due to the fall of the U.S. Nasdaq index, weakening corporate earnings, and recession concerns. On the 12th (local time), the U.S. Nasdaq index closed down 107.87 points (0.95%) at 11,264.73. Additionally, the upcoming June U.S. CPI announcement is expected to show an 8.8% increase year-over-year, significantly exceeding May's 8.6% rise, which also acted as a negative factor.