“Bitcoin is Dead” is Trending in Google Search, $20K Support Holds

By June 22, 2022DeFi
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bitcoin is dead

The phrase “Bitcoin is Dead” is trending in Google’s search engine as the crypto market is suffering one of its worst declines in years with the digital assets recording year-to-date losses of 57.5% according to data from CoinMarketCap.

Data from Google Trends shows that the popularity of this keyphrase is surging to its highest level since May 2021 back when the Chinese government was cracking down hard on the domestic mining and crypto trading industry.

However, the popularity of the term is still not yet reaching the high levels seen in 2017 and 2018 back when BTC experienced one of its most pronounced winters, with the price declining from a peak of $20,000 per coin to as little as $3,000 per coin in roughly a year.

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Website Tracks 15 Apocalyptic Predictions for BTC So Far in 2022

According to data compiled by 99Bitcoins, a digital magazine that keeps a record of all BTC online obituaries, the digital asset has died 15 times this year and 455 times since 2010 back when the site started to track these mentions.

The most recent “Bitcoin is Dead” headline came from hedge fund manager Peter Schiff, a prominent detractor of the digital asset, who tweeted that “Bitcoin will not recover” from this latest decline despite long-term HODLers affirming that they have gone through similar downturns many times in the past.

Long-term Bitcoin #HOLDers aren't worried as they've been through 73% declines before. But previous declines didn't involve anywhere near the total market cap lost during this decline, nor did they involve massive leverage. This crash is just beginning. #Bitcoin will not recover.

Before that, 99Bitcoins highlights a speech from Christine Lagarde, the Chairman of the European Central Bank, in which she says that BTC “is worth nothing” as there is no underlying asset.

Contrarian investors have used these comments about the digital asset in the past as a signal that the decline may be nearing a bottom.

The years 2017 and 2018 remain by far the most active in terms of the appearance of Bitcoin obituaries with a total of 124 and 93 mentions of the token’s doomed future. Interestingly, the China FUD of May last year triggered a lot of negative remarks about the prospects of the digital currency and ended up positioning 2021 in third place.

Thus far, 99Bitcoins has identified 15 obituaries during the first semester of the year. It remains to be seen if more detractors of the digital asset will start to share their apocalyptic predictions following the latest decline.

A Closer Look at Bitcoin’s Price Action

BTC/USD (BitStamp) price chart – Source: TradingView

The $20,000 level remains the line in the sand for bulls as a drop below this level may result in a pronounced decline for the crypto asset.

One of the reasons why this threshold might be so relevant is that many leveraged positions that may be liquidated if the price drops below that level.

Multiple DeFi protocols and even crypto-focused hedge funds may be hanging by a thread if the value of BTC keeps dropping sharply in the following weeks as another wave of forced liquidations could end up pushing the price to the low 10,000s.

Various events could contribute to the continuation of the downtrend including higher-than-expected interest rate hikes adopted by the US Federal Reserve and other major central banks.

In addition, the implosion of some of the stablecoins that are still standing after the collapse of Terra’s flagship dollar-pegged token may lead to a similar outcome. Perhaps the most relevant of all would be USDT – also known as Tether – as this stablecoin is considered by the community the only safe harbor during times of turmoil while many DeFi protocols depend on it for their regular operations.

Thus far, both USDT and its closest competitor, USDC, have managed to maintain their peg. However, in the specific case of Tether, the lack of transparency and lengthier frequency with which they report the status of their reserves may contribute to rattle investors if, at some point, the price drifts off its intended peg from one reason or the other.

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