According to Business Insider, a study conducted by search engine marketing agency SEMrush recently revealed that bitcoin’s price has a 91% correlation with the volume of Google search queries for bitcoin-related terms such as “bitcoin,” “bitcoin value,” “bitcoin price” and so on.
The study drew its conclusions from a database of 120 million keyword searches in the United States linked to the cryptocurrency. Over a year, search engines deal with an estimated 51.4 million bitcoin-related queries, and SEMrush found that bitcoin’s price rose and fell in tandem with the number of search requests.
Here’s SEMrush’s chart showing the correlation between bitcoin’s search volume and its exchange rate:
SEMrush also pointed out that, since June 2017, searches for Ethereum’s price nearly equaled the number of searches for bitcoin.
Can searches help predict bitcoin’s price?
Although the study looked at the correlation between price and search requests, it didn’t say whether searches predicted or trailed bitcoin’s price. Since April 2017, according to the search engine marketing firm, bitcoin searches went up by 450%. Bitcoin’s price went from about $1071 to an all-time high of nearly $5,000, before correcting to about $4,000 at press time, according to data from CryptoCompare.
This doesn’t mean that when search requests go up, bitcoin’s price goes up. It might, in fact, be the opposite: when bitcoin’s value goes up various news outlets start writing about it and, given its bigger value, it becomes more exciting. As such, people who read news about bitcoin hitting new heights become interested in it and search for it to know a little more.
That being said, price predictions based on bitcoin-related searches on Google might not be the best. Nevertheless, the fact that a 91% correlation between searches and the cryptocurrency’s price exists is a good thing, as it certainly draws more people to the cryptocurrency and helps increase its userbase.
In turn, an increase in users may lead to a price increase. Given that bitcoin is a free market backed currency with limited supply, bigger demand means the price will increase. As such, there may be something in bitcoin-related searches.