There is an 82% correlation of the BTC price with the number of Google searches for the word Bitcoin. That metric may go up both when the value of the cryptocurrency increases and before that happens.
It is hard to predict whether the price of Bitcoin (BTC) will rise or drop, as it depends on various factors. However, when Google searches for the cryptocurrency increase, it is possible to forecast future movements, according to specialist Jerry Goddard.
A study by that expert indicates that the Bitcoin price and related Google searches have an 82% correlation worldwide. In other words, the value of the cryptocurrency rises and falls alongside the number of searches.
Anyone might believe that there are more Google searches when the price of Bitcoin increases. However, the data shows the increase may also occur before the rise in the value of the cryptocurrency. That allows identifying whether there will be a variation, proving that it arouses interest.
Before the spike in the price of Bitcoin in April 2021, Google searches for the cryptocurrency peaked at 70/100 in January. In 2017, a similar situation happened during the boom when the word ranked 100/100.
For that reason, Goddard warned that an increase in Google searches for Bitcoin could precede its price rally. Since that would occur as the upward trend resumes, he recommends monitoring that metric.
However, he argues that the correlation does not imply causality, and the data might not mean that spikes in searches affect prices. In other words, he thinks that investors should not make decisions only based on search trends. He recommends remembering that there are other metrics to analyze and predict the Bitcoin price, like the technical and fundamental analysis.
There Are More Google Searches for Bitcoin Than for Dollar and Euro
The study also reveals that the pioneering cryptocurrency was more popular than fiat currencies like the dollar. In 2021, people searched for the word Bitcoin seven times more than for dollar and forty-two times more than for euro.
The increase in users on cryptocurrency platforms also reflects the interest in the pioneering cryptocurrency. For example, CoinMarketCap went from 60 million average monthly visits in 2017 to 194 million in 2021.
Goddard said that the boom of Bitcoin has contributed to increasing the interest from people in it. For that reason, many prediction sites expect that trend to continue rising until the end of 2022.
BTC is trading at around USD 47,615 and has accumulated a 15.2% gain over the last week. Its daily trading volume is above USD 31.72 billion, and its market capitalization is about USD 904.53 billion, according to CoinGecko.
The global Google search level for the word Bitcoin is at 27/100, suggesting the peak of adoption and interest will continue to increase. In a matter of time, that metric might reach values close to those in 2017.
The relevance of the pioneering cryptocurrency is increasingly evident, which investors do not overlook. For that reason, they look for ways to understand how the price of Bitcoin moves and thus make more accurate predictions.
By Alexander Salazar
