Studies have shown that Bitcoin price fluctuation is somewhat affected by Google search trends
Cryptocurrencies are having a little while. The recent boom in the crypto market, despite a global pandemic, has managed to capture worldwide attention. As a result, there have been sudden rashes of crypto startups and investors during this pandemic. To educate more individuals on the use of cryptocurrencies like Bitcoin and other digital assets, giant crypto companies share a lot of educational content on their platforms, launch TV shows and also build social media campaigns to attract more people into the crypto market. One of the hottest cryptocurrencies on social media platforms and other media platforms is Bitcoin. Regular users of the social media platform will be quite aware of the current popularity of BTC and some may even religiously follow the news to get more information about the movement of the crypto market. Crypto analysts have revealed that in a recent study, they found that social media can help popularize cryptocurrency and it also contributes to market price fluctuation. The same phenomenon can be attributed to Bitcoin. Experts say the bitcoin price volatility is largely affected by Google Search Trends and social media platforms. There have been thousands of researches based on this concept, and everything has pointed to the fact that there is a correlation between bitcoin price and Google Search Trends.
In a study conducted by Semrush, experts found that increasing and decreasing volumes of Bitcoin-related Google searches had a negative impact on the crypto’s performance in the market. The study showed that search volume increases as the price of BTC increases, the case could be the other way around, but obviously the two are quite related. People’s interests follow price spikes. The data also reveals that an increase in bitcoin-related Google search trends preceded the bitcoin boom. These phenomena cannot be technically explained by classical economic and financial theories. But since the crypto market is deeply influenced by investor sentiment, these concepts have some relevance. In fact, investors who are new to the market can research trending cryptocurrencies on Google and social media platforms and then make informed decisions regarding their investment strategies.
The Correlation Between Bitcoin Price and Google Search Trends
Bitcoin is one of the hottest topics on search engines and social media. The term “Bitcoin” continues to generate substantial interest in cryptocurrencies among individuals, who eventually turn to Google for more relevant information on the subject. Data from Semrush reveals that bitcoin, bitcoin price, bitcoin value, and bitcoin mining are among the top trending keywords in terms of search volume.
The rising price of Bitcoin and its macabre volatility has definitely got people excited. This price trend is gathered from information sources in various regions. Additionally, the entry of BTC into financial institutions and product offerings has also led to a greater sense of credibility, among investors, for cryptocurrencies. Also, during geopolitical tension or financial crisis, individuals research online choosing BTC as a safe haven, or at least using it as an alternative to fiat currencies. These trends were more common during election times in the United States, demonetization in India, and other situations.
The number of searches on Google for Bitcoin increases during moments of curiosity, or controversy. But this growing interest and popularity in Bitcoins is boosting the overall growth potential of the crypto market. People all over the world appreciate the potential of Bitcoin and other decentralized coins. Over time, more and more investors will join the market, due to the curiosity about digital assets and controversies in the market.
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How Do Google Search Trends Influence Bitcoin Price Fluctuations? – Tech Tribune France
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