Bitcoin search interest hits a one-year high… “Retail investor attention rekindled after the plunge”

Global search interest in Bitcoin (BTC) has surged to its highest level in a year following a recent sharp selloff, according to data. With volatility widening, analysts say retail investors who had stepped back from the market appear to be returning.

According to virtual-asset news outlet Econimist on the 7th, Google Trends shows the search index for “Bitcoin” hit 100 in the first week of February, the highest reading in the past 12 months. That tops the previous peak of 95 recorded when Bitcoin fell below $100,000 in November last year.

Market participants interpret the spike in searches as a signal that retail participation is picking up in tandem with rapid short-term price swings. Historically, Google search metrics tend to rise alongside strong rallies or sharp corrections.

Bitcoin began the month around $81,500 and slid to the $60,000 level in about five days, posting a steep correction. It later rebounded to the $67,000 range, but is still down more than 15% over the past week.

In this context, André Dragosch, head of Bitwise Europe, wrote on X (formerly Twitter) that “the surge in search metrics suggests retail investors are starting to pay attention to the market again.”

Some buying signals led by US investors have also emerged. Julio Moreno, head of research at CryptoQuant, said that “after Bitcoin fell to the $60,000 level, the Coinbase premium turned positive again,” adding that “this indicates renewed buying demand in the US.”

Still, investor sentiment remains stuck in an extreme-fear phase. The Crypto Fear & Greed Index recently fell to 6, staying in “extreme fear.” That is near its lowest level since mid-2022, when the Terra-Luna crisis erupted.