Looking into what people are searching for Google and growth of wallet or wallet growth trends can tell a lot about Bitcoin price trend.
In early when someone was searching for XRP trends on the Google Trend page with an XRP tag, they found out that there an increase in the number of searches made by people worldwide. Searches for XRP were highest in Slovenia followed by Korea then.
No wonder the cryptocurrency went on to realize the best increase in prices in December. It crossed a $1 and further to become the second largest cryptocurrency in market capitalization later on.
DataTrek Research’s co-Founder, Nick Colas seemed to support the point that Google searches can indicate where the future price trends. The search data for Bitcoin support price trends for the past 90 days, he said.
He told CNBC’s “Trading Nation” this week,
“By looking at the number of people who search for the word ‘bitcoin’ on Google, which has roughly a 60 percent market share of search globally, we get a pretty good sense of where the interest is”.
Searches went up between last Thanksgiving and December 17. However, its note worth considering Bitcoin reaches a price of $20,000 on December 17. Searches have also not been high in the last few weeks when Bitcoin prices slumped to $10,00 levels.
“Search trends skyrocketed after Thanksgiving here in the U.S. in November of last year — more than doubling in just a couple of weeks. That incremental search for the term ‘bitcoin’ actually leads to an incremental number of wallets being in form. Thus, a method by which people hold bitcoin”.
Searches can usually tell that there are new people shows interest in buying a cryptocurrency. Regarding the increase in crypto prices, interest among new buyers mostly affects the costs and makes them go up.
However, searches, while they tell the exciting trend, may not be able to entirely say the price trend story in a volatile market like this.
Interest is affected by, for instance, significant announcements like partnerships and prospects of a given cryptocurrency. It is also affecting the buzz in the news and forums. Second, a story of the increasing price of a given cryptocurrency also does make more people get interest.
Colas is optimistic that Bitcoin technology will hold in the long term.