What’s trending? Why cryptocurrencies has been popping up in Google searches more often?
After Bitcoin confidently overcame the $5000 level, there was an increase in Google searches on cryptocurrencies. But what does it mean: a new wave of investor interest or is it just idle curiosity of network users?
What Google Trends is?
Google Trends service can help you to find out what the
crypto community is up to, to filter out the demand for certain assets and give better understanding of what people on the Internet are interested in.
This tool allows you to figure out what specific search queries are popular in different parts of the world.
According to Google Trends, interest in cryptocurrencies, has declined sharply after the first major collapse of the market. From time to time there were surges in the activity of Internet users, but in general the trend was rather negative. For example, in October 2018, the number of requests for the
blockchain for the first time surpassed interest in cryptocurrency. This is despite the fact that the popularity of blockchain and bitcoin requests have been at the same level for the last five years.
It is curious that the rise in "cryptocurrency" inquiries can also be affected by the fall in the price of digital assets. At least that’s exactly what happened in November last year, when the query “bitcoin fell” suddenly became popular. In Google Trends they came to the conclusion that the decline in the rate of the primary cryptocurrency was exactly the factor that was able to attract public attention to the asset.
When they start looking for the word "bitcoin"
The end of “crypto winter” was characterised by the growth of the bitcoin rate above the psychological mark of $5000. At this very moment Google Trends registered an increased users’ interest in purchasing the primary cryptocurrency.
“During the downtrend, and especially the last couple of months, we observed low-volatile Bitcoin, which did not contribute to a surge in emotions on the crypto market. Any movement over 10-15% of the price change per day contributes to new activity. Such changes are very actively broadcast by media, and the number of requests on Google is increasing accordingly” explains Vladimir Denisenko, an LetKnow.News analyst.
The number of "cryptocurrency" search queries jumped in early April and is still kept at a quite high level, since the Bitcoin rate is not in a hurry to roll back to previous values.
Google Trends is confident that if the value of BTC continues to grow, the number of requests like “buy Bitcoin” will increase accordingly. This in turn will push the demand for the purchase of the asset. But if suddenly “bears” will dominate the market again, Bitcoin will again begin to fall in price, and the interest of Internet users is to fade away.
Google and BTC investments
So is there a connection between search queries and real investment? Although Google Trends claim there is, LetKnow.News analysts doubts that.
“There is no dependence between inquiries and investments. New money does not enter the market. Everyone who invests in long, speculators ... all of them are already familiar with cryptocurrency. FOMO (Fear of missing out) is my explanation for the increase in search queries. The higher the price of Bitcoin, the more people will go to Google with requests - "How to buy bitcoin?" And "where to store it?", - Vladimir Denisenko emphasizes.
Anyway, the growing interest in cryptocurrency merely plays into the hands of the industry. Whether those are old or new players, the industry eventually receives investment. And the more money there are in it, the more popular it becomes. The more often people search Google for the words “bitcoin” and “cryptocurrency”, the stronger their adoption is growing around the world.
Author: Evgeny Komchuk