There is evidence from Google Trends that internet searches for bitcoin price can help predict major market moves to the upside.
In 2017, Semrush, a search engine marketing agency, reported that bitcoin prices were 91% related to the volume of Google searches related to bitcoin. This means that the price of bitcoin went up and down simultaneously with the number of searches related to bitcoin.
While the Semrush study showed that search volume increased as the price of bitcoin grew, it did not say whether searches predicted the exchange rate between bitcoin and the dollar. Bitcoin searches increased by 450% in the five months between April and September. The estimated volume of search keywords related to bitcoin in one year was 51.4 million.
Correlation between Bitcoin searches and the price
The most common assumption is that searches increase when the price of bitcoin increases. In other words, people’s interest follows price growth. While this is not entirely wrong, the data shows that the surge in interest searching for Bitcoin predated the Bitcoin boom. But again, this does not mean that a rise in searches will affect prices.
According to Semrush, the correlation between searches related to bitcoin and the price was 82% globally and 79% in search popularity for bitcoin in the US also higher than fiat currencies. In 2021, searches for Bitcoin were seven times more than dollars and 42 times more than euros. There are probably many sites and app platforms that provide exchange rates for dollars and euros, but bitcoin is relatively new, which means that users will have to search online. The interest gap is larger in the US probably because people are less likely to search for their own currency. Searches for Bitcoin are 57 times more popular than searches for dollars in the US and 70 times as popular as searches for euros.
The Bitcoin boom has fueled interest and many forecasting sites expect this trend to continue throughout 2022. Bitcoin-related websites have reported an increase in site traffic; The websites with the highest traffic include CoinMarketCap, Binance, and Coinbase. For example, CoinMarketCap reported an average of 60 million monthly visits between 2017 and 2021. In 2021, that number increased to 194 million.
Google searches for bitcoin-related terms are poised to grow
During the Bitcoin boom of 2017, the keyword “Bitcoin” reached the top 100 in Google Trends. (Note: The value range for a term in Google Trends is between zero and 100.) The search term was at a score of 70 between January and May 2021, which correlates with a massive bitcoin price rally to an all-time high of $64,000. The popularity of the phrase is displayed by the search interest within a particular region over a five-year period. However, the keyword Bitcoin price has a Google Trends value of 16. This means that Bitcoin Price Research has great growth potential. In other words, Google searches for Bitcoin may increase as the bullish trend resumes.
Searches increase as more people see the price go up and are fueled by the fear of missing out. This shows that interest in bitcoin was higher when bitcoin was trading above $50,000 than when it was trading below $20,000. Here’s even more surprising news: Bitcoin has fallen below $35,000, and the Google trend value for the keyword bitcoin price is 16. The price drop and Google searches probably indicate that people are losing interest.
The correlation between bitcoin searches and its price is very strong. The increase in searches for Bitcoin is reflected in the price. It is wise to monitor Google searches for terms related to bitcoin. The increase is likely to precede the next Bitcoin price.
This is another guest post by Jerry Goddard. The opinions expressed are their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.