Predicting whether the price of bitcoin (BTC) is going to go up or down is very difficult as it depends on various factors. However, when searches for cryptocurrency on Google increase, a sign is formed that can help you forecast future movements. This was estimated by the specialist Jerry Goddard in an article published on the NASDAQ stock market blog.
Bitcoin price and related Google searches have an 82% correlation globallyaccording to him study. This means that the value of the cryptocurrency rises and falls in sync with the number of your searches, as you can see in the graph below.
While one might think that Google searches increase when the price of bitcoin rises, the data shows that the increase may also precede the rise of the cryptocurrency. In this way, it is possible to identify if there will be a variation in its value, since it demonstrates the interest it is generating.
For example, prior to BTC’s price spike in April 2021, Google searches for the cryptocurrency peaked at 70/100 in January. Something similar happened in 2017 during its heyday when the word got a rank of 100/100.
For this reason, Goddard warns that an increase in Google searches for bitcoin could likely precede its price rally. A situation that would occur as the upward trend resumes. That’s why he recommends keeping a close eye on this metric, which can be done from the Google Trends website.
However, he maintains that correlation does not mean causation and this data may not necessarily imply that search spikes affect prices. Namely, the investment decision should not be made merely based on search trends. In fact, keep in mind that there are also other metrics to analyze and predict the price of bitcoin, such as the technical and fundamental analysis explained in the CriptoNoticias Cryptopedia.
The word “bitcoin” is more searched than “dollar” and “euro” on Google
The article also reports that the popularity of cryptocurrency was higher than fiat currencies. In 2021 the word “bitcoin” was seven times more searched than “dollar” and 42 times more than “euro”.
This interest is also reflected in the increase in users on cryptocurrency platforms. The CoinMarketCap price watch page, for example, went from have 60 million average monthly visits in 2017 to 194 million in 2021.
As Goddard expressed on NASDAQ, the rise of bitcoin has contributed to increased interest. Therefore, many prediction sites expect this trend to continue throughout 2022.
Right now, the price of bitcoin is hovering above $47,300, while its global search level on Google is 27/100. A figure that suggests that we are not yet seeing the highest peak of adoption and interest in the cryptoactive.