The cryptocurrency markets are generally short on fundamentals, and this is a trading aspect that investors take in stride by means of following technical analysis and monitoring online sentiment. With regard to the latter, a quick look at Google Trends suggests that 2019 is shaping up to be a better year than 2018 despite the lack of solid signs pointing towards a Bitcoin rally. Investors are still interested in digital currencies, but they happen to be looking a little lower down the list of tokens ranked by market capitalization.
According to a recent analysis posted by eToro, an online trading platform that favors social media signals and sentiment, interest in alt-coins, those cryptocurrency tokens that do not enjoy the market capitalization of giants such as Bitcoin, has substantially increased since early January. When measuring the entire cryptocurrency market in terms of capitalization gains this year, 60 percent can be attributed to alt-coins such as Binance Coin, a platforms-specific token that recently went through the initial coin offering stage. BNB is currently in 7th place on the cryptocurrency market cap list, and its trading volumes are catching the attention of active investors. In just a few months, BNB has doubled its post-ICO value, and this is very enticing for active traders looking for quick profits.
Using Google Trends to Measure Interest
Google Trends analysis can be useful for digital currency traders who believe in the Wall Street doctrine of following the herd instinct. In essence, the analysis conducted by eToro measured the interest over time as it pertains to Google searches for information related to cryptocurrency investing; when coupled with market capitalization data, it is clear to see that we are in the midst of alt-coin season, and this can be further explained by the fact that many beginner investors enter the market by acquiring trendy tokens.
Even though alt-coins are certainly trending now, they have previously experienced greater interest. Google Trends data going back to late 2017, a time when Bitcoin hit its all-time high valuation levels, indicates that investors were expecting a bubble and started searching for potential alternatives. This does not mean that a Bitcoin rally should be completely written off this year; previous market periods that favored alt-coins have resulted in a BTC/USD boost.