In 2017, Semrush, a search engine marketing agency, reported that bitcoin prices correlated 91% with the volume of Google searches related to bitcoin. This means that the price of bitcoin has gone up and down along with the number of searches related to bitcoin.
Although Semrush’s study showed that the volume of searches increased as the price of bitcoin increased, it did not specify whether the searches predicted the exchange rate between bitcoin and the dollar. Bitcoin searches rose 450% in the five months between April and September. The estimated volume of Bitcoin-related search keywords in one year was $ 51.4 million.
Correlation between Bitcoin searches and price
The most common assumption is that searches increase as the price of bitcoin increases. In other words, people’s interest continues to rise in price. While not entirely false, the data show that an increase in bitcoin-related search interest preceded the bitcoin boom. But again, this does not mean that an increase in searches will affect prices.
According to Semrush, the correlation between Bitcoin-related searches and price was 82% worldwide and 79% in the United States. The popularity of Bitcoin search was also higher than that of fiat currencies. In 2021, bitcoin searches were seven times higher than the dollar and 42 times higher than the euro. There may be many sites and application platforms that provide dollar and euro exchange rates, but Bitcoin is relatively new, which means users will have to search online. The interest gap is even bigger in the U.S., probably because people are less likely to research their own currency. Bitcoin searches are 57 times more popular than US dollar searches and 70 times more popular than Euros.
The Bitcoin boom has helped increase interest and many prediction sites expect this trend to continue throughout 2022. Major Bitcoin-related websites have reported an increase in site visits; The most visited websites include CoinMarketCap, Binance, and Coinbase. For example, CoinMarketCap recorded 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 about to grow
During the Bitcoin boom of 2017, the keyword “Bitcoin” reached 100 on Google Trends. (Note: The value range of a term in Google Trends is between zero and 100.) The search term had a score of 70 between January and May 2021, which corresponds to the massive proliferation of bitcoin prices in a historical maximum. of $ 64,000. The popularity of the term is demonstrated by the search interest in a particular region over a period of five years. However, the bitcoin price keyword has a Google Trends value of 16. This means that bitcoin price searches have great potential for growth. In other words, bitcoin searches on Google could increase as the uptrend resumes.
Searches are increasing as more and more people see the price increase and are fueled by the fear of getting lost. This shows that interest in Bitcoin was higher when Bitcoin was trading above $ 50,000 than when it was below $ 20,000. Here’s some more surprising news: Bitcoin has dropped below $ 35,000, and the trending value for Google for the bitcoin price keyword is 16. Price drop and Google searches probably indicate that the people have lost everything.
The correlation between Bitcoin-related searches and their price is quite strong. An increase in Bitcoin searches is reflected in the price. It is prudent to monitor Google searches for Bitcoin-related terms. An increase is likely to precede the next bitcoin price hike.
This is a guest post by Jerry Goddard. The views expressed are purely personal and do not necessarily reflect those of BTC Inc. o Bitcoin Magazine.