United States Bitcoin decline massively: Fundstrat’s Tom Lee thinks it’s healthy
|- The United States region has seen nearly 45% decrease in Bitcoin search volume.
- Margin trading and retail investors key drivers behind the current rally.
The co-founder of Fundstrat Global Advisers Thomas Lee in a Twitter message yesterday referred to the recent decline in Bitcoin price as being healthy. The same tweet also touched on the issue of decreasing Bitcoin searches on Google.
“As for the search traffic for bitcoin being low, I also think that is a good sign. It means the rise in Bitcoin has not been accompanied by massive hype.”
As indicated by Google Trends, a search analytics tool provided by Google, the United States region has seen nearly 45% decrease in Bitcoin search volume from the recent peak in Bitcoin price.
Also read: Bitcoin market overview: BTC/USD blast through $10,500 awakening the bulls
According to Changpeng Zhao, the CEO of Binance in an interview with Bloomberg said that the rally seen is mainly driven by retail investors. Zhao says that retail investors currently account for 60% of the total trading volume:
“We have not seen institutions growing faster. [...] What we’ve seen is pickup in both places. The number of institutions coming into this industry has not increased that tremendously in 2019 yet.”
Another factor giving cryptos a push is margin trading. Binance launched margin trading last week. A comment from Zhao says:
“I would say the majority of people by the end of the year will be using margin in some capacity. [...] It’s quite safe to use to be honest. There will be more trading volume and potentially higher volatility.”
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