- Google search activity for Bitcoin remains flat, indicating a shift in retail appetite for the asset.
- Liquidity flows across the market suggest that retail investors have rotated into altcoins, with a particular focus on memecoins.
After reclaiming the $100,000 mark, Bitcoin [BTC] has struggled to break past its recent high of $105,819—especially as liquidity inflows remain stalled.
Retail traders have contributed to this.
Contrary to expectations, the move above $100,000 did not spark increased spot buying from retail. Instead, traders have redirected funds toward other asset classes they believe offer greater long-term potential.
Here’s how AMBCrypto discovered this trend.
Retail interest in Bitcoin gradually fades
There has been a decline in interest in Bitcoin-related search terms on the Google Search engine.
According to Google Trends, search interest in Bitcoin has dropped to 37—one of the lowest points this year. Normally, one would expect interest to be higher given the current Bitcoin euphoria.
However, that is not the case.
A case in point is the sharp increase in search interest from 56 to 100 following the announcement of President Donald Trump’s victory in the 2024 election.
Source: Google Trends
This spike suggested that retail investors were actively searching for Bitcoin, likely with the intent to buy. In fact, Bitcoin witnessed a significant rally to new market highs as liquidity flooded in during that period.
When there is a drop in search interest like this, it implies that market liquidity is moving toward other assets.
Bitcoin dominance drops as reserves stall
The outflow of liquidity from Bitcoin is further confirmed by the decline in Bitcoin Dominance and Exchange Reserves.
The metric, which measures BTC’s market cap relative to the entire crypto market, has dropped from 64.4% on the 8th of May to 61% at press time.
This drop implies that capital is flowing into alternative assets.
Source: CoinMarketCap
At the same time, Bitcoin Exchange Reserves have seen a slight increase and have stalled around 2.44 million BTC held on centralized exchanges.
Source: CryptoQuant
This slight uptick and continued stagnation suggest that retail holders are gradually moving their Bitcoin back to exchanges, likely intending to sell.
Many are probably swapping their assets for stablecoins or other cryptocurrencies.
Where’s the market moving?
An analysis of overall ecosystem activity and the performance of top tokens shows that memecoins have attracted the most liquidity.
According to CoinMarketCap, the top-performing altcoins—cryptocurrencies other than Bitcoin—over the past 90 days have been primarily memecoins.
Source: CoinMarketCap
Four of the top 10 performing assets during this period are memecoins: Fartcoin [FARTCOIN], dogwifhat [WIF], Brett [BRETT], and Pepe [PEPE].
Further analysis shows that more memecoins are likely to join the ranks of the top-performing cryptocurrencies, as the sector’s momentum continues to tilt in their favor.
According to sector-specific performance metrics, Bitcoin and the broader Bitcoin ecosystem have dropped by -0.9% and -0.5%, respectively, over the past seven days.
In contrast, memecoins have rallied 11.4% in the same period.
Source: Artemis
If this trend continues, assets like Pudgy Penguins [PENGU] and Bonk [BONK], which are currently among the top 15 performers, could soon break into the top 10.