There is a general perception among digital currency traders that as the price of bitcoin is always rising, so will the number of internet searches related to this digital currency. However, statistics show that in some cases, the increase in Internet searches related to bitcoin occurred before the price jump.
According to Bitcoin Magazine, the marketing agency Semrush published a report in 2017, which shows that the correlation between the price of bitcoin and the volume of searches related to bitcoin on Google is 91%. This means that during this time the price of bitcoin will rise and fall mainly in parallel with the changes in the volume of Internet searches related to the word bitcoin.
While the Samrash report showed that the price of this digital currency is also rising as bitcoin searches increase, this article does not mention whether the price of bitcoin can be predicted for the future by analyzing Google data.
Between April and September 2017 alone, the volume of Internet searches related to bitcoin increased by 450 percent. Samrash released statistics at the time showing that the number of Google users searching for bitcoin-related keywords in 2017 was 51.4 million.
The most common hypothesis in dealing with this problem is that as the price of bitcoin rises at regular intervals, the volume of related internet searches also increases. In other words, people are interested in watching the jumps in bitcoin prices. This hypothesis is not wrong, but the data show that sometimes the increase in Internet demand began before the price of bitcoin jumped. On the other hand, it cannot be said that the increase in the volume of Google-related bitcoin searches affects the price.
According to Samrash last year, the percentage correlation of bitcoin with Google searches in the 15 months between January 2020 and April 2021 (December 98 to April 1400), taking into account the total number of global Internet users is 82% and 79% for American consumers. The volume of bitcoin searches on Google in 2021 is about 7 times more than “dollar” and 42 times more than “euro”. Of course, keep in mind that bitcoin is still a nascent phenomenon, and naturally people search Google to learn more about it.
The difference between the volume of bitcoin and dollar-related demand is greater in the United States than in the rest of the world, and people in the United States are looking for less of their national currency. According to statistics from American users of Google, the volume of searches related to bitcoin in this country is 57 times more than the dollar and 70 times more than the euro.
The jump in the price of bitcoin last year helped boost the popularity of the digital currency, and data from many forecast websites also show that people expect this upward trend to continue in 2022.
Leading websites in the field of bitcoin and digital currencies report that their number of visits has increased in the last year. Kevin Market Cap, Binance and Kevin Base were respectively the most visited digital currency websites in 2021. Meanwhile, Kevin Market Cup reports that its average monthly visit, which was around 60 million between 2017 and 2021, reached 194 million in 2021
During the jump in the price of bitcoin in 2017, the ranking of the keyword “bitcoin” in Google Trends reached 100. It should be noted that the rate of change of searches associated with each keyword in the tool Google Trends is between zero and one hundred. The figure was at level 70 between January and May 2021 (from December 99 to May 1400), when bitcoin jumped to a record high of $ 64,000. It should be noted that this assessment looks at changes in the volume of global searches for the word bitcoin over the past 5 years.
Google Translate’s Bitcoin Cost rank is now 21, which means that the search volume for this keyword has a lot to grow. In other words, the amount of bitcoin searches on Google may increase as the price continues to rise.
As more and more people watch the price of bitcoin rise and at the same time feel that they are missing out on a special opportunity, the demand for bitcoin is also increasing. Therefore, it is natural that the demand for bitcoin is higher when the price is above $ 50,000 than when bitcoin is traded for less than $ 20,000.
The price of bitcoin is now below $ 45,000, and the search volume for the keyword “Bitcoin price” in Google Trends is at level 21. The simultaneous decline in the price and demand for bitcoins on Google shows that some people have lost interest in this digital currency.
The link between price and Google search is undeniable, and the mutation of each is reflected in the other. So it may be a good idea to look at the changes in bitcoin-related searches in the future; This is because the next jump in the number of searches for bitcoins on Google may occur before the price of this digital currency increases.
The publication Can you predict the price of bitcoin by checking Google searches? appeared first for currency.