The cryptocurrency market faced substantial bearish pressure beginning Thursday, August 28, with many large-cap assets hitting new lows on Friday, August 29. Bitcoin, the leading cryptocurrency by market capitalization, dropped to a new low of $107,850 as the weekend began.
Recent data indicates that this price decline across the digital asset market could have been anticipated. This assessment is grounded in recent activity related to cryptocurrency on Google, the world’s largest search engine.
Is The Crypto Bull Cycle Over?
In a post dated August 29 on social media platform X, Alphractal’s founder and CEO, Joao Wedson, disclosed that crypto-related searches on Google have recently surged to unprecedented levels. According to the on-chain data expert, this recent spike in searches indicates that Bitcoin and the wider cryptocurrency market may have reached a new local peak.
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This finding is drawn from the Google Trends chart, which enables investors to gauge the social engagement surrounding various crypto-related topics on the platform. The chart below compares different subjects, such as cryptocurrency, Bitcoin, altcoins, centralized exchanges, and data aggregation platforms.
As seen in the highlighted chart, the Google Trends metric has recently experienced a notable increase, reflecting heightened public interest across various crypto topics. Wedson noted that such spikes have historically aligned with whales entering the market to sell while public interest peaks.
Additionally, the cryptocurrency market has consistently shown a tendency to move in opposition to crowd sentiment. These patterns account for the price declines observed in many digital assets over the past few days, suggesting that the market has reached a new local top.
However, Wedson emphasized that other on-chain signals indicate that the latest downturn, driven by euphoria, does not necessarily mark the end of the current bull cycle. “Recall when BTC hit $124K—euphoria peaked, whales sold aggressively, and we went short,” he added.
Wedson advised investors to remain cautious when euphoria grips the crypto market, as it may signal an impending local top. He suggested that a more prudent strategy would be to smartly exit the market at elevated prices and re-enter at lower rates down the line.
Total Crypto Market Cap At $3.7 Trillion
At the time of writing, the total cryptocurrency market capitalization stands just above $3.7 trillion, reflecting nearly a 4% decline in the previous day. Data from TradingView shows that over $142 billion has exited the crypto market in the last 24 hours.
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Featured image from Shutterstock, chart from TradingView
