Bitcoin price is almost a perfect match to the Google Searches as founded by economist and Dutch National Bank policy advisor, Joost van der Burgt while Bitcoin futures negatively affected the price. Moreover, Google Trend and search reveals more interesting finds about Bitcoin.
Bitcoin price spur led by people’s interest
Talking about Bitcoin’s peak, $19,500 has been its ATH, after which the price been on a downward slide only. But what exactly is affecting the prices?
According to the new research done by Joost van der Burgt, an economist who is also a policy advisor at the Dutch National Bank, there is a connection between the bitcoin price movements and its Google searches. There has been an almost perfect correlation between the two until the price of bitcoin started sliding in early 2018.
CNBC quoted van der Burgt as saying,
“Every time Bitcoin was in the news, be it positive or negative, the price went up accordingly.”
According to him, the Bitcoin price was about a “perfect match” with the Google searches until the end of 2017. Let’s take a look at Bitcoin price and Bitcoin Google searches separately:
Bitcoin futures affected the Bitcoin price
He also pointed out the introduction of Bitcoin futures right at that time, which might not be a coincidence, stating:
“My take on it is that because of the introduction of futures, that might have deflated the bubble before it got to a level where it might burst completely.”
Previous separate researches have also noted a link between the launch of bitcoin futures and bitcoin price sliding down. Though, the small number of bitcoin futures and having no direct bitcoin involved, this connection has always been refuted.
Having said that, the point worth noting is every time the bitcoin futures expire, bitcoin price takes a hit and slides down. The fact that futures give the big players the opportunity to short or long bitcoin, this just might hold the significance.
Bitcoin trends on Google trend
In relation to Gold, Van der Burgt found no correlation. But he firmly believes public awareness about an investment certainly helps in driving the prices upwards stating:
“If the buzz is everywhere, it doesn’t matter exactly what the news is about… nobody wants to miss out and everybody’s trying to get a piece of it.”
An interesting reveal of Google Searches is the 2017 Trending topics in the United States. “Bitcoin Price” got the 5th most trending “news” topic while “How to buy Bitcoin” made it to the 5th on “How to” list. “What is Bitcoin” has been the 2nd most trending “What is” topic on Google’s US searches.
“How to buy Bitcoin” in Top 5 Search Topic, United States for 2017, from Google Trends – https://t.co/omULxl5nqM
— nicholas resendez (@bothersome) August 28, 2018
Moreover, earlier this month, Clem Chambers, co-founder of financial market website ADVFN, gathered interesting data from Google Trends (chart shown below) while stating,
“This suggests to me that stocks are driven by fear and crypto by greed, a tantalizing idea in its own right.”
Do you agree that Bitcoin hype drives Bitcoin price?
The post Bitcoin’s Perfect Match with this Search Reveals all the Secrets about its Price appeared first on Coingape.
Written by Sagar Saxena @ https://coingape.com/bitcoin-match-search-reveals-secrets-about-price/ August 31, 2018 Sagar Saxena