Recent data from Google Trends shows that global search interest in 'alt season' has fallen to 45, raising questions about current sentiments in the crypto market.
From Peak Interest to Market Correction
Just a few days ago, search queries for 'altcoin' hit the highest level since 2021, while interest in 'Ethereum' surged to a two-year high. This coincided with short-lived rallies in Dogecoin and XRP, which rose by about 19% leading into mid-August. However, both assets have since retraced, losing around 11% in the last week.
Impact of Search Trends on the Crypto Market
Economist Alex Krueger questioned whether the Google Trends spike reflected genuine investor curiosity, stating that 'the spike is dramatic and brief.' This may indicate that the activity was partly driven by manipulation rather than organic growth of interest.
Analysts Remain Optimistic Despite Dwindling Interest
Despite fading search activity, some analysts remain optimistic. David Duong, Coinbase's global head of research, noted that conditions still favor the possibility of an altcoin rally moving into September, citing capital rotation patterns and weakening Bitcoin dominance as indicators.
The decline in interest towards altcoins, as indicated by search query data, raises questions about the extent to which retail investors still influence the market. It will be important to monitor developments in September.
