The price of Bitcoin (BTC) and the search patterns observed on Google Trends are closely linked factors. This connection arises from the fact that a surge in interest in Bitcoin, the prominent cryptocurrency, can result in both elevated prices and an increased frequency of searches for the term “Bitcoin” on Google.
The Present Status of Bitcoin According to Google Trends
Over the past couple of years, Bitcoin has undergone remarkable price fluctuations. It embarked on a bearish trend, plummeting from its all-time high (ATH) of $69,000 in November 2021 to a nadir of $15,400 by November 2022. In recent times, Bitcoin has been trading within the range of $24,700 to $31,800 since March 2023.
Despite the recovery from the $15,400 level, there are uncertainties concerning Google Trends. The search interest in the term “Bitcoin” hit a recent low on October 12 and is presently hovering around the levels seen in 2020.
Notably, data from Google Trends reveals a current-week score of 14, though it’s worth mentioning that the week has not yet concluded, and the score could potentially fluctuate until October 14.
Will the price of BTC be influenced by Google Trends?
Correlation is observed between the two metrics; however, distinctions tend to emerge when one of them undergoes a reversal in its trend.
In 2020, as the price of Bitcoin embarked on an upward trajectory, Google Trends scores were notably low. This disparity created a significant impact on the market. Subsequently, a new correlation developed between these two indicators, contributing to a bull market that extended until March 2021.
Curiously, the divergence depicted in the chart below materialized during November 2021 when BTC reached its all-time high. At this juncture, Google Trends registered a modest value of just 36.
Given this scenario, the cryptocurrency market could potentially experience another divergence in terms of interest. The future path of Bitcoin remains uncertain, with no clear consensus on its direction. The recent geopolitical tensions that have emerged in recent days have further added to the complexity of the markets.