Google Trends is an interesting tool that can easily show you what is currently hot on the internet. However, a new analysis shows that it may also be used for predicting Bitcoin’s (BTC) price, and even future behavior.
Google Trends is the Key for Reading the Market
For over a decade, Google has held the title of the most popular one among all the search engines on a global basis. It has billions upon billions on searches on a daily basis. As such, it can provide a lot of priceless data regarding the new trends and interests of the world. One such interesting observation shows that Bitcoin’s (BTC) price is directly influenced by the amount of interest that the currency receives on Google.
Google Trends has proven time and time again that it can be an invaluable tool, and the new results show that crypto investors might use it to their advantage. It is a tool that provides data regarding Google searches, and by looking at the current interest in a keyword ‘Bitcoin’, one can predict how the biggest crypto might act. This can be useful for predicting market crashes and sudden increases in crypto prices alike.
According to the stats and a graph that is displayed when the keyword ‘Bitcoin’ is entered, it would seem that BTC occasionally actually has even more searches than the US President Donald Trump himself. Additionally, Bitcoin has been looked into more than the stock markets, and even more than Taylor Swift. The graph also shows that Bitcoin searches exceeded Donald Trump searches back in December 2017. This info becomes much more valuable if we remember that this was a time when Bitcoin’s price hit its $20,000 mark for the first time in BTC history.
After that amazing achievement, however, Bitcoin’s price went down together with interest in it, Especially in a period between February and April of this year, both the interest and price of this crypto continued to drop. In the past few weeks, Taylor Swift received more attention than the leading crypto, which speaks volumes of how large parts of the world lost interest in cryptocurrencies.
Altcoins Affected by Searches as well
Another interesting thing is that this works for all other cryptos as well, and Bitcoin is not the only one whose behavior can be predicted according to Google searches. Google Trends shows that both the investments in altcoins, as well as their prices, move together with the global interest in them. However, the interest in the crypto is also influenced by the increase in its price and investments. Basically, everything affects everything else, and it wouldn’t be right to say that the crypto is doing well because people are searching for it. People are searching for it because it is doing well, too.
This is additionally confirmed by the lack of interest in cryptos when the market price drops, as well as a significant increase as soon as the prices go up again. This is also a thing that makes cryptos different from stocks since the price of stocks and results on Google Trends are often contradicting one another. Usually, if the stocks price falls, people start looking into it more, and the search results go up.
These results may indicate that those willing to invest in cryptos are often much more bullish. Additionally, they are hoping to make bigger profits than they could if they were to deal with traditional stocks. Stock investors, on the other hand, continuously monitor the market in order to ensure that they do not lose fortunes, and are making changes as soon as they notice shifts in prices or searches. Basically, stocks sales and purchases are driven by fear of losing the money, while crypto purchases and sales are driven by ambition and a desire to earn.