As the value of a single Bitcoin has risen to more than $9,000 per coin, climbing nearly six points in 24 hours, some are worried the cryptocurrency is in a bubble.
Google Trends noted the search term “buy bitcoin with credit card” is nearing its historic peak according to data from Nick Colas, co-founder of market research firm Datatrek Research, CNBC reported Monday (Nov. 27).
Although the phrase only comprises approximately 3 percent of all Bitcoin-related searches, its search prevalence is on the rise. Colas sees the inclination to use credit cards to purchase the volatile digital currency asset as “a cautious note.”
“For those readers who think about transmission mechanisms between financial assets and the real economy, look no further,” he said in his daily note to clients. “This is it.”
Overall, Bitcoin holds a solid lead in Google searches for digital currencies. In all, 15 cryptocurrencies now have market valuations exceeding $1 billion, according to cryptocurrency market capitalizations firm CoinMarketCap. At $162.4 billion, Bitcoin is more valuable than the next 70 or so competitors combined.
Colas said Bitcoin “still holds a strong lead in terms of global attention in crypto-land.”
The digital payment method has also been getting its share of attention on Wall Street, with Michael Novogratz, head of the Galaxy Investment Partners investment firm, saying he believes Bitcoin will hit $10,000 per coin before the end of the year. Tom Lee, managing partner and the head of research at market research and sector strategy provider Fundstrat Global Advisors, has predicted a mid-2018 price target of $11,500 — nearly double the worth of the cryptocurrency in mid-August 2017.
But, not everyone is convinced. In fact, Mitchell Goldberg, head of consulting firm ClientFirst Strategy, told clients he sees the Bitcoin craze as similar to the dot-com bubble and a sign that “we’ve entered the final and stupidest part of the bull market.”