Google reveals 972 percent increase in searches for “sell ethereum” as crypto value plunges
01/07/2022 / By Mary Villareal
Google search analysis reveals that online searches for “Sell Ethereum” increased by 972 percent in the United Kingdom on January 6th as the value of the cryptocurrency dipped below $3,400. The big drop followed the release of minutes from the Federal Reserve Board’s meeting in December, which signaled that the bank will begin slowing down measures to prop up the economy.
A spokesperson from Payback Ltd said that while the cryptocurrency market is often volatile, the surge in interest to sell Ethereum is concerning for those who are invested in it.
The drop itself coincided with the announcement of new regulations from China and Tesla, which now refused to take Bitcoin as a currency, causing a ripple effect across the entire crypto-market.
The analysis offered a fascinating insight into investors’ reactions toward recent events, and it will be interesting to find the extent that the regulations and decisions have on the market, especially for Ethereum, which are part of the blockchain used for NFTs, which saw a surge in interest in the past few months, the spokesperson commented.
Despite its slump, Ethereum still had a strong close to 2021. While it went over $4,850 in November, its closing price is still way over where it began: it was only a little over $1,000 in January 2021.
Cryptocurrency volatile in nature
The volatile nature of the cryptocurrency market comes as the U.S. navigates new economic uncertainty over the rise of the COVID-19 omicron variant. Federal Reserve Chairman Jerome Powell noted that the health of the economy and ongoing comments by policymakers affect cryptocurrency regulation.
Like Ethereum, Bitcoin also stalled in the past month after its strong performance in November, when it set an all-time high by pricing over $68,000 on November 10th.
Experts advise treating Ethereum like any long-term investment: that is to say, ignore its ups and downs as the latest high price does not mean its volatility has gone away. (Related: Still think cryptocurrencies are a store of value? Ethereum just flash-crashed 96% in a matter of minutes.)
The real question, according to investing expert Jeremy Schneider, is whether or not these coins will continue experiencing compound or exponential growth. “Nothing in the fundamentals of cryptocurrency tells me that the answer is yes,” he said.
Because there is no guarantee that any cryptocurrency value will increase, experts advise never to invest more than five percent of one’s portfolio in it, adding that one should not invest at the risk of not meeting other financial goals, such as paying off high-interest debts or saving for retirement.
Humphrey Yang, a personal finance expert added that it is only when one has met all the benchmarks that they can ignore the hype around new record highs or lows. “Like with traditional, long-term investing, the best thing you can do is “set it and forget it,” he said.
What to expect next in cryptocurrency investing
Ethereum, being one of the most prominent cryptocurrencies by market cap is roughly 50 percent from overtaking Bitcoin. Analysts noticed that Ether has gained ground on Bitcoin in several metrics in the last year, including active addresses, Google search interest and even transaction counts.
The increase in its market cap suggests that investors are looking for potential opportunities outside of Bitcoin, and the enhancements to Ethereum’s network could become a catalyst to attract more funds.
Because of the price of Ethereum and other cryptocurrencies falling, analysts reckon that over $800 million in crypto liquidations have taken place recently. These were no ordinary liquidations either: they have forced liquidations that happened because those who invested were starting to see margin calls in the crypto space, causing more prices to fall. If not careful, things could get ugly fast, which is why some analysts, contrary to some experts, also advise those who invested in cryptocurrency on margin to sell and cut losses before their investments tank even further.
Watch the video below to learn more about investing in cryptocurrency:
This video is from the “BitcoinBCH” on Brighteon.com.
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