How Google Search Trends Influences Bitcoin Price Fluctuations?

Studies have shown that Bitcoin price fluctuation is somewhat affected by Google search trends

Cryptocurrencies are having a bit of a moment. The recent boom in the crypto market, despite a global pandemic, has managed to gain worldwide attention. As a consequence, there have been sudden eruptions of crypto startups and investors during this pandemic. To educate more individuals about the use of cryptocurrencies like Bitcoin and other digital assets, crypto giant companies are sharing a great deal of educational content on their platforms, launching TV shows, and are also building social media campaigns to attract more individuals to the crypto market. One of the trendiest cryptocurrencies on social media platforms and other media platforms is Bitcoin. Regular social media platform users will be quite aware of the current popularity of BTC and some may even religiously follow the news to get more insights on the crypto's market movement. Crypto analysts have revealed that in a recent study they have 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 that the Bitcoin price volatility is largely affected by Google search trends and social media platforms. There have been thousands of searches based on this concept, and everything has pointed toward the fact that there is an existing correlation between Bitcoin price and Google search trends. 

In a study, conducted by Semrush, experts have found that the rising and falling volumes of Bitcoin-related Google searches have adversely affected how the crypto has performed in the market. The study showcased that the search volume rose as BTC's price increased, the case might be vice-versa, but it is evident that both are quite intertwined. People's interests follow price surges. Data also reveals that an increase in Bitcoin-related Google search trends preceded the Bitcoin boom. These phenomena cannot be technically explained by standard economic and financial theories. But since the crypto market is deeply driven by investor sentiments, these concepts do have some relevance. In fact, investors, who are new to the market can search for the trending cryptocurrencies on Google and social media platforms, and then make informed decisions about their investment strategies. 

The Correlation Between Bitcoin Price and Google Search Trends

Bitcoin is one of the most trending topics on search engines and social media. The term 'Bitcoin' has continued to garner the substantial interest of individuals in cryptocurrencies, who eventually turn to Google to find more relevant information on the subject. Semrush data reveals that Bitcoin, Bitcoin price, Bitcoin value, and Bitcoin mining are some of the most trending keywords by the search volume. 

The rising price of Bitcoin and its gruesome volatility has definitely excited individuals. This price trend is collected from news sources across various regions. Also, the entry of BTC into financial institutions and product offerings has also led to a greater credibility sentiment, among investors, for cryptocurrencies. Besides, during a geo-political tension or financial crisis, individuals conduct online searches as they choose BTC as a safe haven, or at least use it as an alternative to fiat currencies. These trends were most common during elections hours in the US, demonetization in India, and in other situations. 

Bottom Line

The number of searches on Google for Bitcoin rises during moments of curiosity, or controversy. But this rising interest and popularity of Bitcoins are driving the overall growth potential of the crypto market. People across the globe are keen on the potential of Bitcoin and other decentralized coins. Over time, more and more investors will join the market, owing to the curiosity around digital assets and trending controversies about the market.